Appeals Court Victory in Insurance Coverage Dispute

Pierce Atwood won an insurance coverage appeal to the Massachusetts Appeals Court for our client, an insured food processing company. The appeal turned on the issue of whether an unexplained cause of damage to property constitutes an “occurrence” under a commercial general liability (CGL) insurance policy. The appeals court reversed summary judgment that the trial court entered in favor of the insurer, and remanded the matter to the trial court for further proceedings. The decision is significant because it is the first in the country where the court ruled that an insured’s liability based on application of the res ipsa loquitur doctrine could be sufficient to establish an “occurrence” under a CGL policy, despite not knowing the actual cause of damage. This is an important decision that is extremely beneficial to policy holders.