In 1992, P.J. Exteriors was paid $50,000 to install a roof on a building containing the Mid-Hudson Castle Company. Several years later Mid-Hudson sued P.J. Exteriors when they found that their roofed leaked. P.J.’s roofing work included a 10-year guarantee on the materials and labor. Mid-Castle’s complaint was that P.J. Exteriors had breached its contract. Upon receiving the claim, P.J. asked for coverage from its commercial general liability insurers, Royal Indemnity Insurance Company and Charter Oak Fire Insurance Company. Both companies denied the claim, also refusing to defend the claim.

P.J.’s requested summary judgment that it was owed coverage and a defense from its carriers. The insurers countered with summary judgment requests that the opposite be found. The lower court granted Royal Indemnity’s request while denying Charter’s. The latter appealed, arguing that it’s CGL Policy was for "BI" or "PD" related to P.J.’s operations. The higher court, referencing several pertinent cases, found that Charter only owed coverage according to the protection owed under a general liability contract. In this case, the original action against P.J.’s involved breach of their product warranty. The court found that the warranty fell outside of the scope of coverage and the lower court’s decision was reversed in favor of Charter.

Mid-Hudson Castle, Limited, Plaintiff, v. P.J. Exteriors, Incorporated, Defendant. NYCTApp. No. 2001-03409. Filed March 4, 2002. 2002 N.Y. App. Div. LEXIS 2199. Reversed. CCH Fire and Casualty Cases Paragraph 7411