RESORTS INTERNATIONAL, INC., A DELAWARE CORPORATION, AND BRITANNIA BEACH HOTEL COMPANY, LTD., A BAHAMIAN CORPORATION, APPELLANTS,
v.
AMERICAN HOME ASSURANCE COMPANY, A NEW YORK CORPORATION, AND THE TRAVELERS INDEMNITY COMPANY, A CONNECTICUT CORPORATION, APPELLEES
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Resorts International sued its insurers American Home Assurance and Travelers Indemnity for coverage of air-conditioning system failures under boiler and machinery policies. The insurers denied claims based on an exclusion for corrosion damage, and the trial court granted summary judgment for the insurers, which the appellate court affirmed.
The court affirmed summary judgment for the insurers, holding that because the undisputed facts established that corrosion caused the air-conditioning failures and corrosion was specifically excluded under both policies, the insurers properly denied coverage.
[1] Insurance policies are construed according to their plain language, and exclusions are enforced as written.
[2] Corrosion is not considered an "accidental breakdown" under a boiler and machinery policy when it is specifically excluded from the definition of accident.
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Join FLexlaw to unlock all legal intelligence“a sudden and accidental breakdown of the object, or a part thereof which manifests itself at the time of its occurrence by the physical damage to the object which necessitates repair or replacement of the object or part thereof”
Definition of covered accidental breakdown under the boiler and machinery policies
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Join FLexlaw to unlock all legal intelligenceResorts International purchased boiler and machinery insurance policies from American Home Assurance and Travelers Indemnity covering their newly inst…
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PER CURIAM.
Plaintiff-appellants seek review of final summary judgment entered in favor of the defendant-appellee insurers in this action to determine insurance coverage.
Plaintiff-appellants had purchased a boiler and machinery policy from the defendant American Home Assurance Company at the time of the failure of their newly installed air-conditioning system and further, had purchased the same type of insurance policy from defendant-appellee The Travelers Indemnity Company at the time of the second failure. Both policies provided coverage for accidental breakdown which was defined as: “a sudden and accidental breakdown of the object, or a part thereof which manifests itself at the time of its occurrence by the physical damage to the object which necessitates repair or replacement of the object or part there of.” However, excluded from the meaning' of accident was “deleted, corrosion or erosion of material.” Plaintiffs filed claims with the respective defendant insurers which denied these claims on the grounds that the cause of the air-conditioning failures was the result of corrosion. Thereupon, plaintiffs filed the instant suit to recover on its claims. Following pretrial discovery, both defendants filed motions for summary judgments which after hearing oral argument thereon, the trial judge granted. Plaintiffs appeal therefrom. We affirm.
The record on appeal demonstrates that it is undisputed that the air-conditioning failures were the result of corrosion, a cause which is specifically excluded under both policies. Thus, we conclude the trial judge was eminently correct in entering the summary final judgments in favor of defendant-appellees.
Accordingly, the judgments herein appealed are affirmed.
Affirmed.
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Adams-Arapahoe Joint Sch. Dist. NO. 28-J v. The Cont'l Ins. Co., 891 F.2d 772 (10th Cir. 1989)…at the exclusion applied to sudden corrosion as much as to any other corrosion. Id. at 594-95; accord Twin City Hide v. Transamerica Ins. Co., 358 N.W. 2d 90, 92 (Minn.Ct.App.1984); see also Resorts Int’l, Inc. v. [*777] American Home Assurance Co., 311 So. 2d 806, 807 (Fla.Dist.Ct.App.1975) (per curiam).2 But see Cyclops Corp. v. Home Ins. Co., 352 F.Supp. 931, 936 (W.D.Pa.1973). We conclude that under Colorado law the word “corrosion” unambiguously refers to all corrosion, however brought about. b. “unles…