Opinion ID: 782346
Heading Depth: 2
Heading Rank: 1

Heading: Loss of income; or,

Text: 6 B. Necessary expenses which you incur to resume, or to maintain your ability to resume, normal operations, not exceeding the amount by which your loss of income is reduced; 7 that you sustain during a period of recovery, resulting from a covered loss, up to the limit of liability shown on the DECLARATIONS. 8 (J.A. at 56) (emphasis in original.) Under the Policy, covered loss means a loss to covered property at a covered location resulting from a peril insured against. The Policy also includes a Property Not Covered Endorsement (PNC Endorsement), which expressly excludes coverage for patterns, dyes, and molds not owned by Plaintiff. The PNC Endorsement, however, modifies only the Personal Property Form. 9 On April 20, 2000, a fire destroyed the Pattern Storage Warehouse. As a result, Plaintiff suffered a loss of income in excess of $900,000. Plaintiff concedes that the Policy does not cover the value of its customers' patterns, but claims entitlement to coverage for its business losses that resulted from the loss of the patterns. 10 When Defendant disagreed with Plaintiff's theory of coverage, Plaintiff filed a complaint for declaratory judgment in Ohio's Auglaize County Court of Common Pleas seeking a declaration that it was entitled to coverage for lost income. Pursuant to 28 U.S.C. §§ 1441 and 1446, Defendant removed the action to the United States District Court for the Northern District of Ohio. 11 Both parties filed cross motions for summary judgment on the issue of Plaintiff's coverage for loss of income under the Policy. On September 28, 2001, the district court denied Plaintiff's motion and granted Defendant's. 12 On October 25, 2001, Plaintiff filed a timely notice of appeal.