Publications

(Article from Insurance Law Alert, March 2019)

For more information, please visit the Insurance Law Alert Resource Center.

The First Circuit ruled that a collapse provision that covered damage caused by “decay” was ambiguous and must be interpreted in the policyholder’s favor.  Easthampton Congregational Church v. Church Mutual Ins. Co., 2019 WL 851191 (1st Cir. Feb. 22, 2019).

A church sought coverage for damage caused by a ceiling collapse.  The insurer’s inspector concluded that the collapse was caused by “withdrawal” of nails used to secure ceiling materials.  More specifically, the inspector opined that over time, the nails’ connection to the ceiling jousts progressively weakened, resulting in the eventual collapse.  In ensuing litigation between the church and its insurer, a Massachusetts federal district court granted the church’s summary judgment motion.  The district court ruled that the damage was at least partially caused by “hidden decay,” which was covered under an “Additional Coverage-Collapse” provision.  The First Circuit affirmed, but on different grounds.  It ruled that “decay” was ambiguous as to whether it includes only organic rot, or whether it also encompasses progressive decline of construction materials.  Interpreting the provision in favor of coverage, the First Circuit affirmed judgment in favor of the church.