Southern Ins. Co. v. Affiliated FM Ins.

July 22, 2016 by Justia

Southern and Affiliated provide insurance coverage for the Ogletree House, an on-campus building at the University, located in Hattiesburg, Mississippi. In February 2013, the house was one of several university buildings damaged by a tornado. Southern contends, inter alia, it is not liable because, under its policy’s valuation provision, the loss by its insured, the University of Southern Mississippi Alumni Association (association), is “nothing” for coverage purposes. Affiliated, the insurer for the University, contends Southern is fully responsible for the loss, and, in the alternative, contests the district court’s pro rata allocation of liability. The district court denied summary judgment for Southern, and granted it in part for the association and Affiliated. The court concluded that Southern is not entitled to summary judgment where its valuation condition can be construed as ambiguous; and, in the alternative, its construction of its policy engenders an unfair or absurd result. Accordingly, the court affirmed the district court's judgment. View "Southern Ins. Co. v. Affiliated FM Ins." on Justia Law