USF&G and Lexington Motion for Summary Judgment Dismissing Plaintiff's Complaint and Cross Motion Denied

On October 25, 2005, Insurance Recovery lawyers obtained a significant summary judgment ruling in New York Supreme Court on behalf of Wal-Mart Stores, Inc., against Lexington Insurance Company and United States Fidelity & Guaranty Company in connection with these insurers' failure to pay business interruption loss under an all risk policy they issued to Wal-Mart.  The action involves insurance coverage for business interruption loss at Wal-Mart's Dickson City, Pennsylvania store arising from the shut down of this Wal-Mart location after a large boulder crashed through the rear of the store.  Wal-Mart's damages were in excess of $10 million.

On cross motions for summary judgment, Judge Edward H. Lehner denied, in all material respects, the insurers' motion while granting Wal-Mart's motion and striking the insurers' key defenses of late notice, lack of fortuity and known loss/loss in progress.