Insurer Must Pay Up In $7M Holiday Inn Flood Suit

Law360, New York (March 28, 2011, 12:56 PM EDT) -- A New York federal judge ruled Thursday that Insurance Co. of Greater New York must cover water damage at a Holiday Inn hotel in Pittsburgh, where losses could exceed $7 million.

Judge Paul G. Gardephe of the U.S. District Court for the Southern District of New York decided that two exclusions in the GNY policy issued to Five Star Hotels LLC did not bar coverage for property damage caused when a sprinkler system ruptured and flooded the hotel.

Judge Gardephe also refused to throw out Five...
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