Opinion ID: 858605
Heading Depth: 2
Heading Rank: 2

Heading: Owned Property Exclusion

Text: The owned property exclusion plainly bars coverage in this case. The exclusion provides the policy does not cover damage to Clarinet’s property, “including any costs or expenses incurred . . . for repair, replacement, . . . or maintenance of such property for any reason, including prevention of injury to a person or damage to another’s property.” (Emphasis added). Clarinet’s entire argument is based on the premise that Essex must cover the expenses Clarinet incurred in stabilizing and ultimately demolishing the Switzer building because these expenses were necessary to prevent further injury to persons and property. Yet, the policy explicitly excludes such expenses. Clarinet’s argument therefore fails. Citing a case interpreting a similar provision under New York law, Clarinet argues Essex is responsible to cover any of Clarinet’s expenses that were “necessary to stop ongoing and imminent damage to property belonging to another.” Castle Vill. Owners Corp. v. Greater N.Y. Mut. Ins. Co., 64 A.D.3d 44, 50 (N.Y. App. Div. 2009). Clarinet contends Castle Village also describes the law in Missouri, but cites no Missouri case in support of its argument.2 Under Missouri law, “‘where [an] 2 Our decision in Slay Warehousing Co. v. Reliance Ins. Co., 471 F.2d 1364 (8th Cir. 1973), discussed below, is not to the contrary. The policy in Slay Warehousing -5- insurance polic[y is] unambiguous, [it] will be enforced as written.’” Todd, 223 S.W.3d at 160 (quoting Rodriguez v. Gen. Accident Ins. Co. of Am., 808 S.W.2d 379, 382 (Mo. 1991) (en banc)). The Essex policy patently excludes such repairs, even when undertaken to prevent harm to third parties or property. We will not ignore the plain language of the policy. Clarinet also relies upon Slay Warehousing Co. v. Reliance Ins. Co., 471 F.2d 1364 (8th Cir. 1973), an Eighth Circuit case presumably applying Missouri law. See id. at 1366 n.3. In Slay Warehousing, “[t]he primary issue [was] whether the insurer [was] liable [under an inland marine policy warehousemen endorsement3] for expenses incurred by [the insured] in taking reasonable means to protect chemicals stored in [the insured’s] warehouse from damage due to exposure following the collapse of [a] warehouse wall.” Id. at 1365. The policy at issue expressly required the insured to “take all reasonable means to protect, safeguard and salvage the [covered] property.” Id. at 1365. We held that the policy obligated the insurer to pay, recognizing “the obligation [of the insurer] to pay the expenses of protecting the exposed [third party] property may arise from either the insurance agreement itself, or an implied duty under the policy contract based upon general principles of law and equity.” Id. at 1367-68 (internal citation omitted). Slay Warehousing provides no help to Clarinet. Clarinet does not identify any similar express language in the Essex policy, as is in the policy in Slay Warehousing, requiring Clarinet to mitigate or prevent damages. Even assuming Clarinet had an implied duty to mitigate or prevent damages, the Essex policy expressly placed the did not have an owned property exclusion expressly making the insured liable for repairs to the insured’s own property. See infra. at 6-7 & n.3. 3 The agreement in Slay Warehousing required the insurance company to “pay on behalf of the [in]sured all sums which the [in]sured shall become legally obligated to pay by reason of liability imposed.” Id. at 1366. -6- burden of such costs on Clarinet. Cf. Die-Cutting Diversified, Inc. v. United Nat’l Ins. Co., 353 F. Supp. 2d 1053, 1058 (E.D. Mo. 2004) (distinguishing Slay Warehousing because the policy in Slay Warehousing expressly required the insured to mitigate damages, and finding the insurer was not required to cover the insured’s mitigation expenses absent an express contractual duty to mitigate). Because the owned property exclusion bars coverage in this case, the district court properly granted summary judgment to Essex and denied relief to Clarinet.4