Volf v. Ocean Acc. & Guarantee Corp

In Volf v. Ocean Acc. & Guarantee Corp. (1958) 50 Cal.2d 373, Volf, a general contractor built a stucco house, and the stucco cracked shortly before the building was completed. This amounted to damage to the exterior finish, which the contractor had to repair. He sought to recover under his liability insurance policy for the expenses of the repair. However, the court interpreted the "care, custody or control" exclusionary clause to prevent his recovery for the damage to the cracked plaster. The court ruled that the defective cement was used and the cracks appeared in the stucco while Volf, the insured, was constructing the house and before the buyer took possession, and thus the loss was occasioned by "injury to . . . property in the care, custody or control of the insured" and was not covered by the policy. ( Id. at p. 375.)