Calif. Odor Case Stinks For Businesses With CGL Policies
California court says commercial general liability policy does not apply as pure economic loss is not a “loss of use” of tangible property.
April 11, 2014
Law360, New York (April 11, 2014, 3:53 PM ET) ‐‐ The U.S. District Court for the Northern District of California recently confirmed that purely economic loss is not a “loss of use” of tangible property and therefore does not constitute property damage under a commercial general liability policy. The district court determined that a restaurant’s reduced profits from loss of customers due to bad odors emanating from an adjacent restaurant is merely economic loss and is not covered property damage.
All Content © 2003‐2014, Portfolio Media, Inc.
The articles on our website include some of the publications and papers authored by our attorneys, both before and after they joined our firm. The content of these articles should not be taken as legal advice. The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the views or official position of Robins Kaplan LLP.
Damned if You Don’t
In Times of Crisis:
If you are interested in having us represent you, you should call us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility. We will not make this determination by e-mail communication. The telephone numbers and addresses for our offices are listed on this page. We reserve the right to decline any representation. We may be required to decline representation if it would create a conflict of interest with our other clients.
By accepting these terms, you are confirming that you have read and understood this important notice.