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A federal appeals court on Wednesday affirmed a lower court ruling in Scottsdale Insurance Co.’s favor in a dispute with a property owner over the cause of damage to an apartment building.
Coral Gables, Florida-based M&M Sisters LLC sued Scottsdale in U.S. District Court in Miami, charging breach of contract for its refusal to indemnify the company under its commercial general liability policy for a “sudden, accidental and/or otherwise covered loss,” according to the ruling by the 11th U.S. Circuit Court of Appeals in Atlanta in M&M Sisters LLC v. Scottsdale Insurance Co.
Scottsdale contended the loss was excluded from coverage based on its structural engineer’s report that the damage was caused by wear and tear to the roof and windows and to faulty construction, repairs, maintenance and materials on the roof and in the roof’s drainage system.
The district court ruled in the insurer’s favor and was affirmed by a unanimous three-judge appeals court panel.
“M&M alleged no facts from which the district court could plausibly infer that Scottsdale breached its contract by denying M&M’s claim,” the ruling said.
Attorneys in the case did not respond to requests for comment.