Policy Doesn't Cover Repair of Gas Distribution System
LVT Number: 14711
Facts: A fire started in the stove of an apartment in landlord's building because of a gas leak. The Fire Department came in and turned off the gas to the building because it wasn't sure at the time where the leak came from. Local law barred turning the gas back on before a thorough test was conducted of the building's gas distribution system. Landlord's plumber found that a number of valves needed replacement before the system could be restored. Landlord later sued its insurance company for coverage for the cost of repairing the gas distribution system. The insurance company claimed that the policy didn't cover ``loss or damage caused by'' a law regulating the construction, use, or repair of the building. The insurance company asked the court to dismiss the case. Court: The insurance company wins. The repairs required to the gas distribution system clearly resulted from the requirements of the law and were specifically excluded from coverage.
61 Jane St. Tenants Corp. v. Gt. American Ins. Co.: NYLJ, 1/23/01, p. 34, col. 1 (S.D.N.Y.; Lynch, J)