Tuesday, April 17, 2018

All Green Electric, Inc. v. Security Nt'l Ins. Co. (Cal. Ct. App. - April 17, 2017)

It's just a tiny little loose bolt in an electric cabinet.  But it created a magnetic field, which in turn stopped an entire mammography room (including an MRI and an x-ray machine) from working.

All from a loose bolt, and when the bolt was tightened, the magnetic field suddenly disappeared.

Which leaves the resulting lawsuit.  And then the tender to the insurance company.  Which refused to defend based upon a particular exclusion clause.

So a tiny little bolt and a tiny little one-paragraph exclusion.  Both of which had major impacts far beyond their size.