“Continuous Trigger” Theory Applies Separately to Each Policyholder

Franklin Mutual Ins. Co. v. Metropolitan Property & Casualty Ins. Co.. (N.J. App., April 17, 2009) A property insurer sought pro-rata reimbursement from a policyholder’s previous insurer following payment for environmental contamination from an underground heating oil tank.  The contamination occurred continuously during both policy’s effective periods as well as a period of ownership by previous owner.  The court held that, under New Jersey’s “continuous trigger” theory, the pro-rata formula is applied separately to each individual policyholder and not collectively
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Occurrence Determined by Cause of Injury, Rather Than Injury Itself

Budway Enterprises, Inc. v. Federal Ins. Co. (C.D. Cal., April 14, 2009) The plaintiff failed to allege facts showing there were two separate causes of theft resulting in loss of two aluminum shipments, with separate Bills of Lading and separate delivery numbers, loaded into two separate tractor-trailers.  Accordingly, the insurer did not breach the insurance contract by applying the $100,000 per occurrence policy limit.   By Richard J. Cohen and Carrie P. Appler   http://www.goldbergsegalla.com/attorneys/Cohen.html http://www.goldbergsegalla.com/attorneys/Appler.html      
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OCCURRENCE/TRIGGER OF COVERAGE – Emergency Demolition of Structure Was an Intentional Act and Not an Occurrence

Village of Springville v. Argonaut Insurance et. al. (N.Y.A.D. 4th Dept., April 24, 2009)   In a case successfully handled by the authors, the Appellate Court declared that the insurer was not required to defend the policyholder against a federal claim asserting constitutional violations arising from a Village’s demolition of a fire-damaged building.   In January, 2005 a fire occurred causing significant damage to a structure. As a result of the fire, Village officials determined that it was necessary to
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