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Thursday, June 21, 2012

BUILDING MATERIALS CORPORATION OF AMERICA d/b/a GAF MATERIALS CORPORATION VS. ALLSTATE INSURANCE COMPANY, ET AL. A-4444-09T3


BUILDING MATERIALS CORPORATION OF AMERICA d/b/a GAF
MATERIALS CORPORATION VS. ALLSTATE INSURANCE COMPANY,
ET AL.  A-4444-09T3

In this insurance coverage dispute following the settlement
of a class action lawsuit, plaintiff, the manufacturer of roof
shingles, appealed from a judgment of no cause of action entered
after a lengthy jury trial, and the defendant insurer cross-
appealed from an order denying its motion for a new trial on its
counterclaim.  
 
Defendant's insurance policy contained an exclusion for
damage to its own products.  In affirming the trial court's
rulings and jury verdict, we principally held that on its claim
for indemnification under the policy, plaintiff cannot establish
a prima facie case of covered loss simply by demonstrating that
the class action claimants alleged potential third-party
property damage; rather, plaintiff must show that the underlying
settlement actually included payment for such claimed damages. 
The burden then shifts to the insurer to show that the policy
excluded the loss. 03-13-12