Division 3 Applies "Occurrence" Definition to Irrigation Mishap
At the crossroads between agriculture and insurance, Division 3 recently held as follows in a case of rotten onions damaged when someone who was instructed to turn off the irrigation instead turned it on, causing said onions to, well, rot:
- Turning on the water -- while an intentional act in itself -- was nonetheless a covered accidental "occurrence" within the meaning the policy because the wrongdoer did not intend the adverse consequence of his act . Nationwide Mutual Ins. Co. v. Hayles (1/04/07).
This holding has application to construction defect claims. For example, if a drywall sub intentionally deviates from the installation details in the design, the resulting damage is still covered unless the sub also intended for that resulting damage to occur.
And lest there be any doubt, Division 3 also settled this significant issue: "An onion is not the same thing as the soil it is grown in." Enough said.
