Insurance Co. of North America v. United States Gypsum Co.

GLEN M. WILLIAMS, District Judge.

This diversity case presents the novel issue of whether the subsidence of the earth beneath a gypsum processing plant was fortuitous. For the purposes of an “all risk” insurance policy, the court rules that the subsidence event was indeed fortuitous and denies the insurance company’s motion for judgment notwithstanding the verdict.

FINDINGS OF FACT

The parties in these cases include the United States Gypsum Company (USG) and the Insurance Company of North America (INA). USG is a Delaware corporation engaged in the mining of gypsum, a mineral used chiefly in the…