The Sixth Circuit recently upheld dismissal of KVG Properties, Inc.’s claims under a first-party property policy arising from damage to KVG’s office spaces due to tenants’ use of cannabis growing operations. We have been tracking the KVG case closely and previously reported on KVG’s initial appeal and Westfield’s retort on why the district court correctly dismissed the claims. Although there was no coverage for KVG under the particular facts of this case, the Sixth Circuit’s decision raises several important insurance issues for policyholders to consider and previews likely battlegrounds for future cannabis coverage disputes, many of which are precipitated by the variances in federal and state cannabis law.
Continue Reading Sixth Circuit Holds “Litany of Exclusions,” Illegal Cannabis Operations, Dooms Property Coverage Claim
Growing Operations
Insurer Defends Denial in Property Coverage Dispute Involving Marijuana Growing Operations
By Michael S. Levine & Geoffrey B. Fehling on
Posted in Property
Last month, we reported on the ongoing insurance coverage dispute between commercial landlord KVP Properties, Inc. and its property insurer, Westfield Insurance Company. The dispute arises from an October 2015 DEA raid on KVG-owned rental units in Novi, Michigan, which uncovered damage to the units related to the tenants’ marijuana growing operations. The arguments raised by KVG on appeal highlight a number of important marijuana-related coverage issues, which Westfield has now addressed in opposition.
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Continue Reading Insurer Defends Denial in Property Coverage Dispute Involving Marijuana Growing Operations
Sixth Circuit Appeal Underscores Numerous Marijuana Operations Insurance Coverage Issues
By Michael S. Levine & Geoffrey B. Fehling on
Posted in Property
Commercial landlord KVG Properties Inc. has appealed a district court summary judgment ruling dismissing its claims under a first-party property policy issued by Westfield Insurance Company, arguing that the district court improperly rejected its claim because KVG’s tenants’ use of the property for marijuana growing operations was illegal under federal law. The appeal underscores the growing divide between state and federal marijuana laws and raises several important insurance coverage issues that will likely continue in the future.
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Continue Reading Sixth Circuit Appeal Underscores Numerous Marijuana Operations Insurance Coverage Issues