Which Came First? Turns Out, It May Not Matter. Illinois Appeals Court Weighs in on Anticoncurrent-Causation Clause for the First Time

For the first time, an Illinois court addressed an anti-concurrent causation clause. In Bozek v. Erie Ins., 2015 IL App.(2d) 150155 (Dec. 17, 2015) , an Illinois appellate court held a homeowner’s insurance policy’s anti-concurrent causation clause precluded coverage because an excluded event, hydrostatic pressure, contributed to a single loss (the lifting of a pool out of the ground). The plaintiffs incurred damage to their in-ground swimming pool after a heavy rain storm. The large amount of rain saturated the
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You Can’t Keep it Bottled Up: Defective Bottle Cap = Defective Bottled Product

The Appeals Court of Massachusetts held that a first-party property policy’s ensuing loss provision did not restore coverage for the non-defective contents of a bottle rendered unsaleable by defective bottle caps.  Since the product contained in the bottle could not be separated from the defective bottle cap, the whole product was defective and excluded from coverage. In 2008, a manufacturer entered into an agreement with a company to manufacture a milk-based shelf-stable protein drink designed to require refrigeration only after
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Entrust Me, Man: Landlord’s Due Diligence in Screening Tenant Results in Application of “Entrustment Exclusion” For First-Party Claim Arising Out Of Marijuana Operation

In United States Specialty Insurance Co. v. Barry Inn Realty, Inc., 2015 U.S. Dist. LEXIS 119450 (SDNY September 8, 2015), a federal judge for the Southern District of New York granted a commercial property insurer summary judgment finding no coverage for a claim of extensive property damage caused by a marijuana-growing operation conducted by the policyholder’s tenant. The policyholder leased the subject premises to the tenant for the purposes of operating a bar/restaurant. Prior to executing the lease, the policyholder
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Anti-Concurrent-Causes Clause Bars Coverage When One Cause is Excluded

In JAW The Pointe, L.L.C., v. Lexington Ins. Co., 2015 WL 1870054 (Tex. April 24, 2015), the Texas Supreme Court found an insurer did not violate the Texas Insurance Code and the Texas Deceptive Trade Practices Act by denying coverage where the damages in question were caused in part by flooding, a cause excluded by the policy. JAW The Pointe purchased an apartment complex in Galveston, Texas in 2007, only 14 months before Hurricane Ike struck. The complex sustained significant
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Eight Circuit Allows General Contractor’s First-Party Property and Bad Faith Claims to Proceed Against Hyatt’s Insurers

Weitz Company, LLC v. Lloyd’s of London (8th Cir. (Iowa) Aug. 4, 2009) Hyatt retained the plaintiff firm to act as general contractor to build a luxury retirement community in Florida. Severe rains caused extensive water damage to the work site in June 2002. The contractor immediately took steps to repair the damage and, in November 2002, notified Hyatt representatives that it wished to submit a claim to their commercial property insurers, which covered all of Hyatt’s real and personal
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