STORY FROM: Superstorm Sandy Insurance Litigation

Anti-Current Causation Clause Defeats Claim for Water Damaged Goods, N.C. Federal Judge Rules

CHARLOTTE, N.C. — A North Carolina federal judge has awarded an insurer summary judgment in a commercial property coverage action, finding the policy clearly excludes flood or surface water damage, even if another covered peril, such as water from below the surface, concurrently contributes to the damage.

On Dec. 14, Judge Richard L. Voorhees of the U.S. District Court for the Western District of North Carolina noted that the state recognizes the policy’s anti-concurrent causation clause.

Ideaitalia Contemporary Furniture assembles packages of manufactured furniture parts and ships the furniture to retailers. Selective Insurance Co. issued a commercial insurance policy to ...

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