DISCLAIMER: Any unofficial case summaries below are prepared by the clerk's office
as a courtesy to the reader. They are not part of the opinion of the court.
171470P.pdf 05/25/2018 Welspun Pipes Inc. v. Liberty Mutual Fire Insurance
U.S. Court of Appeals Case No: 17-1470
U.S. District Court for the Eastern District of Arkansas - Little Rock
[PUBLISHED] [Loken, Author, with Gruender and Kelly, Circuit Judges]
Civil case - Insurance. Under the facts presented and the provisions of
the insurance policy at issue, the district court did not err in
determining Welspun's mitigation costs were not necessary expenses
included in the policy's loss of business income coverage because they did
not reduce a covered business income loss; there was no evidence that
Welspun's spending $14 million to shift some production to India after a
fire at its Arkansas plant was necessary to satisfy Welspun's duty to
mitigate the insurer's obligation to indemnify covered business losses;
the plain language of the policy, the origins of the loss of business
income coverage, prior cases and insurance treatises, and the undisputed
facts established in the summary judgment record make clear that the
incremental costs Welspun incurred in shifting the production were not
"necessary expenses" within the meaning of the relevant policy provision.