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California U.S. District Court says Katrina storm surge is not excluded by excess policy's flood exclusion

posted 59 weeks ago on Insurance Coverage Blog

A correspondent sent me the pdf of August 16 decision in Northrop Grumman v. Factory Mutual Ins. Co., a $1.2 billion lawsuit by Northrop alleging breach of contract for Factory Mutual's failure to pay for Katrina losses at Northrop's various shipbuilding facilities in Louisiana and Mississippi. Northrop is based in Los Angeles, and this lawsuit was filed in California state court and removed by the insurer to federal district court. For some strange reason, almost none of the entries shown on the district court's electronic docket are available, so I'm hindered in reviewing the pleadings. But from what I can determine from press reports, Northrop press releases and other sources, including debate in Congress over whether the federal government should advance money to Northrop to cover p

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