Ruling in favor of Alleghany unit in acid case reversed
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A federal appeals court Wednesday reversed on technical grounds a ruling in favor of an Alleghany Corp. unit in a case in which two people were injured when apartment maintenance workers mistakenly poured acid down a ventilation shaft in an effort to unclog plumbing pipelines.
The incident occurred in August 2016, according to court papers in Capitol Specialty Insurance Corp. v. West View Apartments Inc. et.al.
The acid spilled on to two people who were in a bathroom at the time, causing severe burns and injuries, according to the court papers.
Litigation ensued after the victims sued West View Apartments, and Alleghany Corp. unit Capitol Specialty denied coverage. The U.S. District Court in Miami ruled in the insurer’s favor.
A three-judge appeals court panel reversed the lower court without coming to a decision on the case’s merits, stating the lower court had made an error in accepting all the facts alleged in Capitol’s complaint as true, when it should have accepted West View’s allegations.
Because a comparison of the competing pleadings “reveals a material dispute of fact” judgment must be denied, the ruling said, in reversing the lower court.
Attorneys in the case did not respond to requests for comment.
