Weekly Law Resume - December 16, 2010: Insurance Coverage - "Loss of Use"

more+
less-

The term "property damage" is defined by most CGL policies to include the "loss of use" of physical or tangible property. This case considered whether an underlying action for conversion of monies qualified as "property damage" for the loss of use of the monies taken. Advanced Network, Inc. (ANI) contracted with Mission Federal Credit Union (Mission) to service cash distribution machines in Mission's stores. In October of 2004, it was discovered that an ANI employee had been stealing cash from Mission's machines, which he concealed by filing false records. Ultimately, the employee pled guilty in a federal criminal case to misappropriating almost $2,000,000 between 2000 and 2004. Mission made a demand against its fidelity bond holder, Cumis Insurance Company (Cumis), which reimbursed the entire amount, less Mission's deductible. Thereafter, in August of 2005, Cumis filed suit against ANI in federal court for equitable subrogation, negligence, breach of contract and respondeat superior.The term "property damage" is defined by most CGL policies to include the "loss of use" of physical or tangible property. This case considered whether an underlying action for conversion of monies qualified as "property damage" for the loss of use of the monies taken.

Advanced Network, Inc. (ANI) contracted with Mission Federal Credit Union (Mission) to service cash distribution machines in Mission's stores. In October of 2004, it was discovered that an ANI employee had been stealing cash from Mission's machines, which he concealed by filing false records. Ultimately, the employee pled guilty in a federal criminal case to misappropriating almost $2,000,000 between 2000 and 2004. Mission made a demand against its fidelity bond holder, Cumis Insurance Company (Cumis), which reimbursed the entire amount, less Mission's deductible. Thereafter, in August of 2005, Cumis filed suit against ANI in federal court for equitable subrogation, negligence, breach of contract and respondeat superior.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Low, Ball & Lynch | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×