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US Airways, Inc. v. Commonwealth Ins. Co.

Circuit Court of Arlington County, Virginia

May 14, 2004, Decided

Law No. 03-587

Opinion

 [*408]  This matter comes before the Court on Defendant PMA Capital Insurance Corporation's Motion for Summary Judgment and US Airways' Cross-Motion for Partial Summary Judgment. Having heard the arguments of counsel, examined the briefs prepared by the parties and taken this matter under advisement, the Court issues the following ruling.

I. Statement of the Case

US Airways Group, Inc. ("US Airways") entered into a property insurance contract with Caliber One Indemnity Company that provided coverage for the period of December 1, 2000 through December 1, 2001. 1 Defendant  [*409]  PMA Capital Insurance Corporation ("PMA") became a party to this action as a successor in interest to Caliber One Indemnity Company.

 [**2]  The policy in question is an All Risk Manuscript Property Policy ("the Policy") which covers damage to property, including business interruption, up to a limit of $ 25 million. 2 The Policy is a subscription policy where several insurance providers jointly agreed to underwrite a percentage of the coverage. The present case involves only one of the insurance providers, PMA. 3

The relevant sections of the Policy are:

7. COVERAGE

B. Business Interruption 

1. Loss resulting [**3]  from necessary interruption of business conducted by the Insured and caused by loss, damage, or destruction to real or personal property by any of the perils covered herein during the term of this policy.

. . .

5. Resumption of Operations: It is a condition of this insurance that if the Insured could reduce the loss resulting from the interruption of business:

(a) by a complete or partial resumption of operation of the property insured, whether damaged or not;

. . .

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64 Va. Cir. 408 *; 2004 Va. Cir. LEXIS 95 **

US Airways, Inc., et al. v. Commonwealth Ins. Co., et al.

Subsequent History: Motion denied by US Airways, Inc. v. Commonwealth Ins. Co., 2004 Va. Cir. LEXIS 121, 65 Va. Cir. 238 (2004)

Reversed by PMA Capital Ins. Co. v. Us Airways, Inc., 2006 Va. LEXIS 28 (Va., Mar. 3, 2006)

Disposition:  [**1]  Plaintiff's motion for partial summary judgment granted. Defendant PMA Capital Insurance Corporation's motion for summary judgment granted in part and denied in part.

CORE TERMS

insured, coverage, business interruption, damages, Stabilization, summary judgment motion, summary judgment, civil authority, proof of loss, airport, loss of market, interruption, proceeds, parties, peril, premises, partial summary judgment, bad faith, courts, losses, offset, terms of the policy, federal government, actual loss, salvage, costs, terms, military authorities, insurance policy, property damage

Civil Procedure, Summary Judgment, Entitlement as Matter of Law, Genuine Disputes, General Overview, Materiality of Facts, Motions for Summary Judgment, Insurance Law, Claim, Contract & Practice Issues, Policy Interpretation, Ordinary & Usual Meanings, Ambiguous Terms, Unambiguous Terms, Plain Language, Types of Insurance, Excess Insurance, Umbrella Policies, Contracts Law, Contract Interpretation, Intent, Evidence, Types of Evidence, Documentary Evidence, Parol Evidence, Entire Contract, Parol Evidence, Question of Law, Estoppel & Waiver, Burdens of Proof, Aviation Insurance, Coverage, Hull & Property, Property Insurance, Obligations, Notice Requirements, Remedies, Costs & Attorney Fees, Failure to Defend, Liability & Performance Standards, Bad Faith & Extracontractual Liability, Good Faith & Fair Dealing, Responses, Defenses, Demurrers & Objections, Motions to Dismiss, Failure to Pay Claims, Settlements, Excess Judgments, Policy Limits, Business Insurance, Torts, Air Transportation, Victim Compensation Funds, Transportation Law, Air & Space Transportation, Commercial Airlines, Business Interruption Insurance, Operation & Premises, Breach, Breach of Contract Actions