A federal appeals court on Wednesday upheld a lower court decision in favor of Scottsdale Insurance Co. in a dispute with a property owner about the cause of the damage to an apartment building.
Coral Gables, Fla.-based M&M Sisters LLC sued Scottsdale in U.S. District Court in Miami, alleging 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 decision of the 11th US Circuit Court of Appeals in Atlanta i M&M Sisters LLC v. Scottsdale Insurance Co.
Scottsdale argued that the loss was excluded from coverage based on its structural engineer̵
7;s report that the damage was caused by wear and tear on the roof and windows and by faulty construction, repairs, maintenance and materials on the roof and in the roof drainage system.The district court ruled in favor of the insurer and was upheld by a unanimous three-judge panel of the Court of Appeal.
“M&M did not allege any facts from which the trial court could reasonably 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.
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