Insurer Needn't Cover $5M Faulty Gas Tank Deal, Judge Says

Law360, Los Angeles (January 6, 2017, 1:45 PM EST) -- A Florida federal judge ruled Thursday that Central Mutual Insurance Co. doesn't have to cover a gas tank supplier's $5 million settlement of a lawsuit alleging it provided defective tanks to a convenience store chain, finding that none of the underlying claims constituted covered property damage.

U.S. District Judge Harvey E. Schlesinger granted Central's motion for judgment on the pleadings, agreeing with the insurer that commercial general liability policies it issued to Metal Products Co. offer no coverage for Metal Products' deal with underlying plaintiff First Coast Energy LLP.

According to the judge, all of First Coast's claims against Metal Products...

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