K & Lee Corp. v. Scottsdale Insurance

MEMORANDUM

WALDMAN, District Judge.

Plaintiff alleges that defendant improperly denied coverage under a fire and extended risk policy for contamination of plaintiff’s inventory caused by invisible ethyl acetate vapors. Plaintiff contends that because the policy insures against smoke damage, defendant has breached its contract and acted in bad faith by denying coverage. Defendant contends that the chemical vapors were not “smoke” within the meaning of the policy and has moved for summary judgment. Plaintiff filed a cross-motion for summary judgment on the issue of liability.

I. LEGAL STANDARD

In…