The U.S. Court of Appeals for the Fifth Circuit has reversed the decision of a lower court and held that an insurer must defend a roofing manufacturer in litigation in which the company's roof membrane system allegedly caused additional damage to a Bronx high school. The case is Siplast, Inc. v. Emps Mut. Cas. Co., No. 20-11076, 2022 U.S. App. LEXIS 795 (5th Cir. Jan. 11, 2022).

The duty-to-defend case stems from an underlying lawsuit filed by the Archdiocese of New York and other plaintiffs including Siplast Inc, a roof manufacturer, which had sold a roof membrane system to a Bronx high school in 2012. According to the ruling, Siplast provided a 20-year guarantee for the work.

In November 2016, ceiling tiles throughout the high school suffered water damage after a rainstorm. A Siplast contractor attempted to repair any damage and prevent leaks, but the school continued to suffer from water damage. After continued communication, Siplast admitted there were problems with the roof, and that its earlier repair attempts had been temporary. Siplast "would not honor the Siplast Guarantee with respect to any permanent improvements of the roof." A consultant said remediation and roof replacement would cost around $5 million. The plaintiffs then filed suit against Siplast.