No Coverage for Contractor's Faulty Workmanship

Contractor walking through site

Tred R. Eyerly discusses the case Martin v. Acuity, 2018 Ky. LEXIS 188 (Ky. April 26, 2018).

July 10, 2018
Tred R. Eyerly - Insurance Law Hawaii

The Kentucky Supreme Court determined there was no coverage for the contractor's faulty workmanship in digging the existing basement of a building to make it deeper. Martin v. Acuity, 2018 Ky. LEXIS 188 (Ky. April 26, 2018).

Martin Elias/Properties, LLC (MEP) purchased an older home to renovate and resell for profit. MEP hired Tony Gosney to renovate and expand the basement. Gosney agreed to dig the existing basement deeper, pour new footers and pour a new concrete floor. While performing his work, Gosney failed to support the existing foundation adequately before digging around it. Within days, the old foundation began to crack and eventually the entire structure began to sag. Gosney stopped work and notified his insurer, Acuity.

Mr. Eyerly may be contacted at


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