6th Circ. Says No Payout For Universal Image's Office Mold

Law360, New York (April 11, 2012, 4:47 PM EDT) -- Universal Image Productions Inc. cannot seek coverage from Federal Insurance Co. over water and mold damage that led the television special effects company to abandon its Michigan office space, the Sixth Circuit ruled Tuesday.

The decision by a three-judge panel backed a federal district court’s finding that the insurance company correctly denied coverage because Universal did not suffer any “direct physical loss or damage” as stated in its policy.

The suit stems from heavy rain that created mold and bacteria contamination in Universal’s Southfield, Mich., building....
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