Insurer Says Northrop's $387M Katrina Loss Figure 'Flawed'

Law360, Los Angeles (June 26, 2013, 8:41 PM EDT) -- Factory Mutual Insurance Co. on Wednesday urged a California federal judge to toss Northrop Grumman Corp.'s remaining coverage claim for $387 million in damages caused by Hurricane Katrina, saying the defense contractor's method for calculating time-element losses for business interruption was “fundamentally flawed.”

Factory Mutual's attorney Thomas Cook argued that Northrop arrived at its estimate of time-element damages by using a methodology that did not comply with the terms of its policy, which covered only losses resulting from “physical loss or damage” to its Gulf of...
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