WASHINGTON SUPREME COURT TO DECIDE HOW FAR SCHWINDT GOES!
Division I Says Exclusion for Property Damage to Work Performed by the Named Insured Applies to Subcontractors’ Work
Mutual of Enumclaw Insurance Co. v. MacPherson Construction & Design, Inc., 139 Wn. App. 1058 (2007) (unpublished) (Div. I), rev. granted, ___ Wn.2d ___ (2008) 
by Pamela A. Okano, Reed McClure
May 2008

Facts:

The insured contractor was sued for damages arising out of the faulty workmanship of a subcontractor. The insured’s umbrella policy excluded property damage caused by work “performed by or on behalf of the named insured arising out of the work or any portion thereof.” However, a supplemental endorsement replaced that exclusion with one that excluded coverage for property damage to “work performed by the Named Insured arising out of the work or any portion thereof.”

The trial court ruled that the supplemental endorsement precluded coverage. The court of appeals affirmed, reasoning that in Schwindt v. Underwriters, 81 Wn. App. 293, 914 P.2d 119 (1996), it had held that work performed by the assured included work performed by subcontractors.

The Washington Supreme Court has granted review.