Businesses often try to stay out of court, as legal actions can often cost a lot of time and effort. Fortunately, legal representation can help lessen these losses if a business does have to defend its interests. An Ohio-based insurer was vindicated by a federal district court when it ruled on a motion against it regarding a provision of building coverage. The lawsuit regarded damage to a property that the insurance claimed was accidental and therefore exempt under their coverage. The original tenant of the space in question was a company that declared bankruptcy and ended it tenancy when the inheritor of its assets cleared out of it. The terms of the original lease demanded a certain level of cleanliness throughout the property when it was surrendered, but the owners determined it was not clean and a toxic powder substance covered many surfaces within. The owner filed a claim with the Fairview-based insurer, which claimed a pollution exclusion provision in the coverage applied to the mess. When the owner filed a suit against the insurer based on their response, the court agreed with the insurer. The “physical loss resulting from [the tenant]’s breach of contract was not ‘accidental’ under the terms of the policy,” according to the court. This affirms the insurer’s claim regarding the details of its policy. Any company that has to answer a lawsuit or feels the need to begin one can consult a lawyer on the best way to protect its interests. An attorney can prepare filings and arguments as well as negotiate with other parties to work out solutions.
Federal court ruled in favor of Ohio insurer
On Behalf of Lindhorst & Dreidame Co., L.P.A. | Mar 11, 2020 | Business Litigation
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