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2nd Circuit Affirms Expansive Reading of “Arising Out Of.”

July 24, 2009

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In the case of <i>Turner Const v. Kemper Ins.</i>, American Manufacturers Mutual Insurance Company ("AMMIC") and Lumbermens Mutual Casualty Company ("LMCC") (collectively "Kemper") appealed from a district court order that required them to pay Turner Construction Company (“Turner”) more than $9,750,000 for damages resulting from a fire. The fire occurred at Manhattan's Central Synagogue as the partial result of the work of Kemper’s insured, Trident Mechanical Systems, Inc. ("Trident"). The court therefore held that the fire “arose” out of Trident’s work and thus awarded insurance coverage to Turner. The court ruled that the phrase “arising out of” only requires “that there be some causal relationship between the injury and the risk for which coverage is provided."
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