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Judge: Insurer Has Duty To Defend Insured’s Alleged Water Treatment Failure

Mealey's (July 23, 2015, 11:59 AM EDT) -- BALTIMORE — A commercial general liability insurer has a duty to defend an insured in an underlying action because the alleged property damage, as the result of the insured’s failed water treatment in a heating, venting and air conditioning (HVAC) system, constitutes an “occurrence,” a Maryland federal judge ruled July 16 (State Automobile Mutual Insurance Co. v. Old Republic Insurance Co., et al., No. 14-2989, D. Md.; 2015 U.S. Dist. LEXIS 92707).

(Memorandum opinion available. Document #69-150810-011Z.)

In May 2008, AMCP-1, LLC entered into a contract...
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