1629 Monroe Drive, NE :: Atlanta, Georgia 30324
Phone 404.442.8834 :: Fax 404.442.8835
The Johnson Insurance Law Group, LLC
Complex Insurance Risks Counseling & Litigation

Commercial Warehouse

Water from ruptured pipes and sprinklers damaged the interior of a large warehouse in North Carolina. The property insurer retained our Firm to investigate and analyze coverage under the property coverage. With the assistance of electrical consultants, our attorneys determined that the insured had attempted unsafe modifications to the power system of the warehouse. The modifications kept the system from heating sufficiently in winter. The insured argued that the equipment failure was not his fault and the freezing event was an insured fortuitous loss. On behalf of the property insurer, we filed a declaratory judgment suit in federal court in North Carolina to prove that the insured recklessly exposed the structure to known and expected freezing conditions. Witnesses testified that the insured had opted not to undertake expensive repairs and instead tried unsuccessfully to sell the property. The insured then allowed the premises to freeze in order to claim an insured loss. Based on the facts and details we developed in discovery, the court ruled in favor of the property insurer, finding that the damage was not accidental or fortuitous.