Arizona Hotel Flood Coverage Action Dismissed Following Settlement

PHOENIX — A dispute between a Phoenix hotel and its insurer and a reinsurer over coverage for damage caused by a malfunctioning air conditioner has been settled, according to a recent filing in Arizona federal court.

Judge James A. Teilborg of the U.S. District Court for the District of Arizona dismissed the case with prejudice on June 24.

Midtown Hotel Group sued its insurer, Selective Insurance Company of America, and its reinsurer, The Hartford Steam Boiler Inspection and Insurance Co., demanding coverage after an air-conditioning system malfunctioned and flooded the hotel.

Midtown alleged a water pump in the rooftop-mounted central …