Source: http://masscases.com/cases/sjc/348/348mass427.html
Timestamp: 2019-04-22 14:27:49+00:00

Document:
VAPPI & CO., INC. vs. THE AETNA CASUALTY & SURETY COMPANY.
In proceedings against a contractor doing construction work, an alleged claim for deprivation of access to adjacent property through the contractor's closing a passageway was not within the coverage of a general liability policy insuring the contractor against liability for "injury to . . . property . . . caused by accident," nor within an obligation of the insurer under the policy to defend a proceeding against the contractor "alleging such injury" ; but such obligation to defend was applicable to certain other alleged claims against the contractor which were based on negligence on his part causing water to flow onto the adjacent property and causing injury to buildings thereon by vibrations from trucks and equipment and which were stated in such terms that they could be regarded as asserting injury by "accident" not clearly within an exclusion from coverage in the policy of injury due to "grading," "excavation," "filling," and other specified activities [431-432].
CONTRACT. Writ in the Superior Court dated January 23, 1963.
The action was heard by Sgarzi, J., without jury.
CUTTER, J. The plaintiff (Vappi) seeks to recover, under the terms of an insurance policy issued by the defendant (Aetna), for legal fees and engineering services incurred by Vappi in defending proceedings against it. The trial judge heard the case upon a statement of agreed facts, and ordered judgment for Vappi for $4,084.36. Aetna appealed.
In 1957 and 1958, coverage B of liability policies issued by Aetna to Vappi required Aetna to pay all sums which Vappi "shall become legally obligated to pay as damages because of injury to . . . property . . . caused by accident." Aetna also undertook to defend "any suit against . . . [Vappi] alleging such injury . . . even if such suit is groundless" and to "pay all expenses incurred by . . . [Aetna and] all costs taxed against . . . [Vappi]." Among exclusions from this coverage was liability for "injury to . . . any property arising out of . . . structural injury to any . . . structure due (a) to grading of land, excavation . . . filling . . . pile driving . . . caisson work, or (b) to moving, shoring . . . raising or demolition of any . . . structure or removal or rebuilding of any structural support thereof." [Note 1] During the policy periods Vappi was building a women's residence for Boston University. On June 19, 1958, one Iovine, [Note 2] whose property abutted upon the construction site, brought a bill in equity against Vappi and the university, alleging that Vappi had wrongfully closed and excavated a sixteen foot passageway, which she was entitled to use for access to her land. The bill alleged that Vappi's acts "resulted in . . . damage to . . . [Iovine's] land, building, and business" and prayed for an injunction and assessment of damages for the injury to Iovine's "land and building." Vappi did not then notify Aetna of the equity suit.
On February 9, 1961, the bill in equity was dismissed when reached for trial "on the basis that . . . [Iovine and the corporate plaintiff, see fn. 2] were no longer seeking relief under the original bill of complaint, but sought damages for alleged specific acts by Vappi." On the next day two actions at law against Vappi and the university were commenced. An action by Marjorie Iovine, Inc. (fn. 2) sought to recover loss of business profits caused by the boarding up and excavation of the passageway. An action by Iovine sought to recover for (a) withdrawal of water and soil from under her buildings and land causing them to settle, (b) some diversion of surface water onto her premises, and (c) damage to her land, buildings, and their foundations because of vibration from Vappi's use of trucks and heavy equipment close to her land.
Vappi in its answers in these actions asserted, among other matters, the defence of the statute of limitations. About this time Vappi notified Aetna of these actions and demanded that it defend them. At least as early as March 9, 1961, Aetna or its attorneys learned of the equity suit. Aetna agreed, after some correspondence, to defend certain counts, reserving the right to contend that the policies afforded no coverage.
in the combined cases. Vappi's present action is to recover the reasonable fees paid to its counsel and for certain engineering services in connection with the trial.
were reasonably susceptible of the interpretation that they asserted injury to property caused by accident and of a type not within the excavation exclusion (fn. 1).
be wholly within the excavation exclusion. See Magoun v. Liberty Mut. Ins. Co. 346 Mass, 677, 681-682.
The somewhat general allegations by Iovine and her corporation would also permit proof of injuries which could be regarded, under our decisions, as caused by accident. Unintended or unforeseen consequences of reckless or negligent acts, and even of intentional acts, at least if not undertaken "with malice or intent to injure" the person or property hurt (see the D'Amico case, 345 Mass. 218, 223-224), may be within the definition of "accident." See Sheehan v. Goriansky, 321 Mass. 200, 204-205; New England Gas & Elec. Assn. v. Ocean Acc. & Guar. Corp. Ltd. 330 Mass. 640, 651-655; Nichols & Co. Inc. v. Travelers Ins. Co. 343 Mass. 494, 497; Couch, Insurance 2d, Sections 41:6-41:24; Appleman, Insurance Law and Practice, Section 4492. Cf. Wrobel v. General Acc. Fire & Life Assur. Corp. Ltd. 288 Mass. 206, 209, 210-211; Bowen v. Lloyds Underwriters, 339 Mass. 627, 629. Cf. also Kuckenberg v. Hartford Acc. & Indem. Co. 226 F. 2d 225, 226-227 (9th Cir.). This court will be slow to adopt any narrow construction of the term "accident" which will limit or defeat any coverage fairly intended to be given by a policy described by the insurer in such broad terms ("[c]omprehensive [g]eneral [l]iability [p]olicy") as was this policy. The D'Amico case recently reviewed the precedents and there is no occasion for repeating the discussion in that opinion.
[Note 1] For convenience this provision is hereafter referred to as the excavation exclusion.
[Note 2] Marjorie K. Iovine owned the land adjacent to the construction site. Marjorie Iovine, Inc., a corporation, was tenant at will of the premises. It was also a plaintiff in the equity suit hereinafter mentioned.
[Note 3] Aetna also suggests, without supporting authority, that Vappi "is not . . . to be reimbursed for counsel . . . fees [and expenses] necessarily incurred" by Vappi to protect itself against claims not within coverage B. Under Rule 13, this contention is advanced too vaguely to require our consideration. Relevant decisions indicate, however, that, until Aetna, during its defence of Vappi, narrowed the claims to those seeking "a recovery that the policy did not cover," Aetna was not relieved from its obligation to defend. See Lee v. Aetna Cas. & Sur. Co. 178 F. 2d 750, 753 (2d Cir.); Christian v. Royal Ins. Co. 185 Minn. 180, 182; Globe Nav. Co. v. Maryland Cas. Co. 39 Wash. 299, 305-306. See also Maryland Cas. Co. v. Moritz, 138 S. W. 2d 1095, 1097 (Tex. Civ. App.); annotations, 41 A. L. R. 2d 434, 436-438, 49 A. L. R. 2d 694, 721.
[Note 4] Paragraph 17 of the amended bill asserts that Vappi "performed . . . negligent acts . . . which . . . caused . . . damages to the land, building, and business" of Iovine and her corporation, including, in subpar. c, "elevating the grade of the [university's] premises" which caused "surface waters . . . to flow onto . . . [Iovine's] premises," and, in subpar. d, Vappi's use of "innumerable heavy trucks and other heavy construction equipment so that the vibrations and impacts of said trucks and equipment . . . cause[d] movements, cracks, and tilting in the foundation and . . . superstructure of . . . [Iovine's] buildings." Count 7 of the action with which the bill in equity was consolidated alleged, inter alia, that Vappi "was negligent . . . in not taking reasonable precautions to prevent . . . diversion of surface water upon . . . [Iovine's] premises," causing injury to Iovine's land, building, and improvements, resulting from raising the grade of the university's premises, and Count 8 alleged Vappi's negligence in failing to take precautions to prevent injury to Iovine's "land, building, and improvements" from the vibrations.
[Note 5] Cf. e.g. C. Y. Thomason Co. v. Lumbermens Mut. Cas. Co. 183 F. 2d 729, 733 (4th Cir.); Neale Constr. Co. v. United States Fid. & Guar. Co. 199 F. 2d 591, 593 (10th Cir.); American Cas. Co. v. Minnesota Farm Bureau Serv. Co. 270 F. 2d 686, 690-692 (8th Cir.); Albuquerque Gravel Prod. Co. v. American Employers Ins. Co. 282 F. 2d 218, 220-221 (10th Cir.).

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