A rotary clinker kiln.

The Fifth Circuit today upheld a district court’s construction of a business interruption policy against the insurer, holding that ambiguity in policy language about how to calculate the deductible still indeed favors the policy holder.  The dispute arose from damage to a kiln that grinds "clinker" — a key ingredient of cement.  The fight focused on the meaning of "15 Day’s Value Time Element of the Objects Experiencing the Loss or Damage."  Blawgletter won’t test your patience by laying out the competing arguments but will simply say that the insurer came up with a formula that would have let it totally off the hook.  Texas Industries, Inc. v. Factory Mut. Ins. Co., No 06-10681 (5th Cir. May 11, 2007) (applying Texas law).

Imagine that.

Barry Barnett

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