PENTAIR, INC., — v. AMERICAN GUARANTEE AND LIABILITY INSURANCE COMPANY, —

LOKEN, Chief Judge. '

An earthquake struck Taiwan in September 1999, disabling a substation that provided electric power to two Taiwanese factories. Lacking power, the factories could not manufacture products they were supplying to a subsidiary of Pentair, Inc. When production resumed two weeks la.ter, Pentair shipped orders from Taiwan via airfreight to meet its customers’ needs for the Christmas season, resulting in additional costs of $634,731. Pentair filed a claim for this loss under the “Contingent Time Element” provision- of the all-risk manuscript property insurance policy issued to…