Archives: Earth Movement Exclusion

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Insurance Fraud Case: Second Circuit Addresses Adverse Inference Instruction, Restitution For Prior Payments

In insurance fraud cases involving actual or alleged destruction of evidence by the insured, an issue often arises regarding whether an adverse inference instruction is appropriate, and, if so, what form it should take. The Second Circuit recently approved a “light” form of adverse inference instruction that allowed the jury to make an adverse inference … Continue Reading

Causation Issue Involving Nominal Cause Addressed By First Circuit Opinion Under Massachusetts Law

In Stor/Gard, Inc. v. Strathmore Ins. Co., No. 12-1650, 2013 U.S. App. LEXIS 11015 (1st Cir. May 31, 2013), the First Circuit rejected the notion that a 2% contribution to a loss could be a “cause” of the loss. Defendant Strathmore Insurance Company (“Strathmore”) insured Plaintiff SGI, which owned property with self-storage warehouses, and Plaintiff … Continue Reading

Earth Movement Exclusion Bars Coverage for Loss Caused by Excavation Per New York Court of Appeals

In Bentoria Holdings, Inc. v Travelers Indem. Co., 2012 N.Y. LEXIS 3087 (N.Y. Oct. 25, 2012), Travelers denied first-party property coverage for cracking to the insured’s property that occurred due to excavation on an adjacent property. The policy excluded coverage for earth movement as follows: 1. We will not pay for loss or damage caused … Continue Reading

Earth Movement Exclusion Bars Coverage Based On Anti-Concurrent Causation Clause

The United States District Court for the District of Arizona recently held that the efficient proximate cause doctrine does not exist in Arizona and, therefore, a policy’s concurrent causation language should be given effect. In Stankova et al. v. Metropolitan Property and Casualty Ins. Co., 2012 U.S. Dist. LEXIS 150900 (D. Ariz. Oct. 17, 2012), … Continue Reading

“Earth Movement” Exclusion Bars Coverage for Damage Traced to Leak from Broken Water Pipe, According to Massachusetts Appeals Court

Most commercial and personal lines property insurance policies exclude damage caused directly or indirectly by the peril of “earth movement.” The ISO version of this exclusion appears in many modern policies and provides that: [Insurer] will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage … Continue Reading
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