Haynes and Boone's Newsroom

CGL Policies Triggered by Allegations of Physical Damage to Adjacent Property
05/04/2012
Leslie Conant Thorne

Mid-Continent Cas. Co. v. Academy Dev., Inc., No. 11-20219, 2012 U.S. App. LEXIS 8056, --F.3d -- (5th Cir. Apr. 20, 2012)

A standard commercial general liability (CGL) policy covers “damages because of . . . property damage.” Recently, in Mid-Continent Casualty Co. v. Academy Development, Inc., No. 11-20219, 2012 U.S. App. LEXIS 8056, --F.3d -- (5th Cir. Apr. 20, 2012), the Fifth Circuit Court of Appeals held that such policies are triggered by allegations of diminished value due to adjacent property damage, even where the underlying claimant has no ownership interest in the physically damaged property. The court also rejected the carrier’s contention that defense costs should be allocated over all triggered policies.

Excerpted from the American Bar Association Section of Litigation, Insurance Coverage News & Developments on May 4, 2012. To read the full article, click on the PDF linked below.

PDF - CGL-Policies.pdf