Judge Says ‘Faulty Work,’ ‘Latent Defect’ Exclusions Do Not Bar Insurance Coverage

Mealey's (September 11, 2015, 12:27 PM EDT) -- EL DORADO, Ark. — Exclusions for “cost of making good . . . faulty workmanship” and for “latent defect” do not preclude insurance coverage for business interruption costs sustained as a result of an oil pipeline rupture, an Arkansas federal judge ruled Sept. 10, finding genuine issues of fact, however, as to causation (Lion Oil Co. v. National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 13-1071, W.D. Ark.; 2015 U.S. Dist. LEXIS 120721).

(Memorandum opinion available. Document #69-151002-010Z.)

Lion Oil Co. owns a...
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