Quarterly Newsletter Spring 2018
In a recent decision, an Oregon Court rejected an insurer’s position that the terms “surface water” and “flood water” referred to natural water sources as well as man-made sources, thereby finding that the insurers breached the contract by denying coverage. However, the Court reinforced the general rule in Oregon that, despite being incorrect on coverage, the insurer could not be held liable for breach of its duty of fair dealing as a matter of law simply for incorrectly interpreting the scope of coverage afforded by its policy.