508 F. App'x 733
10th Cir.2013Background
- Larimer County submitted a claim under its Travelers property policy for snow damage to Fairgrounds roofs after December 2006 storms.
- Travelers investigated and concluded the displaced purlins were caused by defective design/construction, an excluded loss, not covered.
- Larimer County filed suit seeking a declaratory judgment and asserted counterclaims for breach of contract, bad faith, and Colorado CPA violations.
- The district court granted Travelers summary judgment, applying the policy language and the defective-construction exclusion with an exception.
- The district court concluded damages to the purlins themselves did not fall within a covered loss under the policy.
- On appeal, Larimer County contends the weight of snow could be a separate covered cause of loss and challenges the district court’s reasoning and application of the policy.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether snow load constitutes a covered loss. | Larimer County | Travelers | No coverage for displaced purlins as the loss falls under defective construction exclusion. |
| Whether the policy’s exception to the defective-construction exclusion creates coverage here. | Larimer County | Travelers | Exception does not cover displaced purlins; no new covered loss created. |
| Whether the policy excludes coverage but should apply an efficient proximate cause analysis. | Larimer County | Travelers | Efficient proximate cause does not override the explicit exclusion here. |
| Whether the district court properly interpreted Colorado insurance-law principles. | Larimer County | Travelers | No reversible error; district court’s interpretation affirmed. |
Key Cases Cited
- Leprino Foods Co. v. Factory Mut. Ins. Co., 653 F.3d 1121 (10th Cir. 2011) (insurance contract interpretation; plain meaning governs)
- Butler v. Union Pac. R.R., 68 F.3d 378 (10th Cir. 1995) (state-law questions in diversity cases; contract interpretation)
- Constitution Party of Kan. v. Kobach, 695 F.3d 1140 (10th Cir. 2012) (standards for assessing state-law claims post-construct)