Healy Tibbets Construction Co. v. Employers' Surplus Lines Insurance

Opinion

COHN, J. *

This case involves the interpretation of certain language in an insurance policy providing “all risk” coverage for an underwater construction project. The facts essential for the determination of the case may be summarized as follows:

The Carmel Sanitary District of Carmel-By-The-Sea (District) wanted to build an outfall pipe and diffuser system by which the treated sewage accumulated in its treatment plant ashore could be carried away and disposed of in the deep sea. The project required the construction of an effluent line (a concrete lined pipe extending way into the ocean)…