The alleged theft of gasoline in several incidents caused by a faulty computer program was too small to reach a deduction for a fuel distribution company, says a federal appeals board confirming a lower court's decision in favor of a Hannover SE unit.  Dania Beach, Florida-based Port Consolidated Inc. operates a cordless fuel plant in Riviera Beach, Florida, according to Friday's decision by the 11th U.S. Circuit Court of Appeals in Atlanta Port Consolidated Inc. International Insurance Co. of Hannover PLC.
Card locking systems are unattended refueling systems, where only authorized customers who have an existing contractual relationship can pump petrol and diesel according to the decision.
Due to an incorrectly programmed setting. , Port was informed that a company's driver was allowed to exceed the limit of 75 liters by up to another hundred liters, even though the company was only charged for 75 liters per transaction, according to the decision.
Port billed the company for the extra fuel its driver took, but the company refused to pay, according to the decision.
Port filed a claim with its insurance company, Hannover SE, International Insurance Co., Hannover PLC, then appealed to the insurer at the U.S. District Court in Fort Lauderdale, Florida, when it refused to pay, alleging breach of contract.
The district court ruled in favor of the insurer and was upheld by a unanimous three-court appellate court
Each alleged act of fuel theft constituted a separate event under the policy, the decision said. "It is common ground that the fuel price at the time of the alleged theft did not exceed $ 4 per gallon and that the additional gallons of stolen fuel per transaction did not exceed $ 1
"Therefore, we conclude that none of the port's losses exceeded the policy ($ 1,000) deductible and that InterHannover did not have to pay the port under the policy for the alleged fuel thefts," the decision said in a confirmation of the lower court's summary judgment in the case.
Lawyers in the case did not respond to a request for comment.
Hannover Re said in August that it would see a "major loss" from the explosion in Beirut, Lebanon.