The judges of the Fifth Circuit Court of Appeals found that negligent construction of two silos did not preclude the issue of physical damage to the silos resulting from the negligent construction. The case is TIG Ins. Co. v. Woodsboro Farmers Coop., 2024 U.S. App. LEXIS 24003 (5th Cir. 2024).

What Happened

Woodsboro Farmers Cooperative hired E.F. Erwin (Erwin) to assemble two large grain silos on Woodsboro’s property in eastern Texas using construction “kits” Woodsboro had purchased from the manufacturer. Erwin subcontracted with AJ Constructors, Inc. (AJC) to perform the work, with Erwin maintaining a supervisory role.