The United States Court of Appeals for the Second Circuit this month upheld a lower-court decision holding that the City of San Diego had not notified an insurer in reasonable time to collect on an insurance policy covering damage from gas leaks. Indian Harbor Insurance Company sued the City of San Diego in a New York court.
The city was to inform the insurer of damages from gas leaks "as soon as practicable," according to the policy. But the city waited 31 months — more than 12 months and 58 days before giving notice on leaks, according to the insurer, which denied coverage on these and other grounds.
The trial court sided with the insurer last year and the appeals court upheld the decision earlier this month.