Fourth District Holds That "Ensuing Loss" Provision In All Risk Policy Is Unambiguous
June 08, 2011
Specifically, the ensuing loss provision at issue provided that, if the excluded cause "results in a cause of loss . . . , and that resulting cause of loss is a Covered Cause of Loss, we will pay for the loss or damage caused by such Covered Cause of Loss."
The trial court ruled the provision is ambiguous, and construed it against the insurer. The Fourth District disagreed, holding that the ensuing loss provision is unambiguous and that "the plain language of the ‘Ensuing Loss’ provision means that if [an excluded cause] sets in motion another cause, which is not excluded by the policy, and that intervening cause results in a covered loss, the windstorm exception does not apply and the loss would be covered by the policy." The Fourth District remanded for the trial court to determine the direct cause of the damage at issue.
©2024 Carlton Fields, P.A. Carlton Fields practices law in California through Carlton Fields, LLP. Carlton Fields publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information and educational purposes only, and should not be relied on as if it were advice about a particular fact situation. The distribution of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship with Carlton Fields. This publication may not be quoted or referred to in any other publication or proceeding without the prior written consent of the firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our Contact Us form via the link below. The views set forth herein are the personal views of the author and do not necessarily reflect those of the firm. This site may contain hypertext links to information created and maintained by other entities. Carlton Fields does not control or guarantee the accuracy or completeness of this outside information, nor is the inclusion of a link to be intended as an endorsement of those outside sites.