Fli-Back Company, Inc. v. Philadelphia Manufacturers Mutual Insurance Company and Affiliated Fm Insurance Company

CRAVEN, Circuit Judge:

The Fli-Back companies, toy manufacturers in High Point, North Carolina, allege that they were surprised and dismayed when the defendants, two affiliated insurance companies, refused to pay a claim for business interruption loss caused by a fire in Fli-Back’s West Building. Fli-Back sued for the loss, mustering various theories designed to provide coverage when the policy’s terms fail, but the district judge granted defendants’ motion for summary judgment. On Fli-Back’s appeal we reverse.

Fli-Back first negotiated for fire insurance coverage with Philadelphia…