Surface Water Exclusion Nixed In Flooded Hotel Suit

Law360, New York (November 24, 2010, 5:43 PM EST) -- A federal judge has ruled that Auto-Owners Insurance Co. must pay M&M Corp. for flood damage to a hotel after a state court ruled that the surface water exclusion in the hotel's policy did not extend to water that had spilled out of a retention facility.

Judge Joseph F. Anderson Jr. granted M&M Corp.'s motion for partial summary judgment on Tuesday in the U.S. District Court for the District of South Carolina, stating that Auto-Owners had breached its contract when it asserted that the damage constituted...
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