A federal appeals court on Monday upheld a lower court ruling in favor of an FM Global unit in disputes over $ 1.47 billion in property and business outages. New York University claimed it was due to the 2012 Superstorm Sandy.
Judgment of a unanimous panel of three judges at the Second U.S. Circuit Court of Appeals in New York University v Factory Mutual Insurance Co. confirmed a decision in March 2019 by the US District Court in New York.
In the lower court's ruling, the judge had said that NYU's arguments in favor of coverage were "easily excluded."
Among the issues discussed in the appellate court decision was NYU's claim that the district court had erred in concluding the 201
"We do not agree," said the Appeals Panel. The language of the 2011 policy "clarifies that any flood-related costs that could qualify as additional coverage are part of, not in excess of, the $ 250 million limit for liability for loss or damage due to flooding," it said to confirm the decision of the lower court.
A spokesman for FM said in a statement: "We were pleased with the decision of the trial judge and agree with our position on the matter, and we are pleased to see that the Board of Appeal upheld the decision of the trial court."  NYU and its attorneys did not respond to a request for comment.