Essex Must Defend Smelly Carpet Suit: 1st. Circ.

Law360, New York (April 16, 2009, 12:00 AM EDT) -- A federal appeals court has ruled that Essex Insurance Co. may not use certain business risk exclusions to deny defense coverage to contractor Bloomsouth Flooring Corp. for litigation associated with the installation of allegedly foul-smelling carpet.

On Thursday, the U.S. Court of Appeals for the First Circuit partially reversed a summary judgment issued in the U.S. District Court for the District of Massachusetts, ruling that Essex has a duty to defend Bloomsouth in a state court carpet-installation-related suit, despite the exclusions cited by the insurer....
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