SECURA Insurance v. Lyme St. Croix Forest Company, LLC

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In this insurance dispute, the Supreme Court reversed the decision of the court of appeals affirming the circuit court’s interlocutory order that determined that the fire at issue constituted multiple occurrences instead of a single occurrence, holding that the fire constituted a single occurrence pursuant to the commercial general liability (CGL) policy. The court of appeals concluded (1) under the CGL policy, there was an occurrence each time the fire spread to a new piece of real property, and (2) therefore, the $2 million aggregate limit applied rather than the $500,000 per-occurrence limit for property damage due to fire arising from logging and lumbering operations. Both the circuit court and court of appeals purported to apply the “cause theory.” The Supreme Court reversed, holding that the court of appeals’ approach was unpersuasive and had unreasonable consequences and that the $500,000 per-occurrence limit for property damage applied. View "SECURA Insurance v. Lyme St. Croix Forest Company, LLC" on Justia Law