A federal appellate court has ruled in favor of a Chubb Ltd. entity in a case concerning a building that was about to sink into the ground, based on a design exclusion in the insurance company's coverage.
Jowite Limited Partnership discovered that one of three buildings it owns in Easton, Maryland, built in the late 1980s, was about to collapse, according to Thursday's ruling by the 4th U.S. Circuit Court of Appeals in Richmond, Virginia, in Jowite Limited Partnership v. Federal Insurance Co.
After a construction company recommended that the building be demolished, Jowite filed a claim with the Chubb Federal Insurance Unit to seek coverage for the damage to the building "due to land", the ruling said.
The Federal denial of the claim, citing several policy exceptions, including flawed design and settlement of exceptions, brought a lawsuit to the U.S. District Court in Baltimore, which ruled in favor of the insurer.
The rules. ing was confirmed by a unanimous three-judge in the Court of Appeal. "While we conclude that the district court did not make a reversible error in considering that the design exclusion precludes coverage of Jowite's claims, we also note, without deciding, that the outcome of this case would remain unchanged if we were to review the district court's application of exclusion settlement." , it said in the judgment.
Lawyers in the case did not respond to requests for comment.