Firm Obtains Affirmance in Favor of Our Client Affiliated FM Insurance Co.

November 14, 2007

Mealey's Litigation Report and Mealey's Catastrophic Loss recently reported that the Sixth Circuit Court of Appeals affirmed a grant of summary judgment in favor of our firm's client, Affiliated FM Insurance Co., on breach of contract and bad faith claims. The Sixth Circuit Court of Appeals found that an all-risk policy's contingent business interruption provision did not extend the business interruption endorsement to cover actual losses directly resulting from prohibition of access by order of civil authority occurring at the insured's supplier and customer location. In denying the bad faith claim the court found that where there is no coverage under the policy an insured can not maintain a claim for bad faith based on the refusal of the insurer to pay the claim.

Scott G. Johnson


Chair, Minneapolis Insurance Group

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