Ninth Circuit Rules Insured’s Knowledge of Corrosion Does Not Entitle Insurer to Summary Judgment

The U.S. Court of Appeals for the Ninth Circuit reversed entry of summary judgment in favor of an insurer who argued that the insured paint supplier’s knowledge of corrosion in offshore facilities at a natural gas production project voided coverage for property damage that the insured “knew . . . had occurred, in whole or in part.”  The Ninth Circuit concluded that, while it was undisputed that the insured knew of corrosion at offshore facilities, there remained fact questions about the insured’s knowledge of corrosion at onshore facilities and pipelines and with respect to whether the corrosion damage to the onshore facilities and pipelines was a “continuation, change, or resumption” of the known corrosion at the offshore facilities. [9/10/15]

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