BREACH OF INSURED WARRANTY TO FENCE IN PROPERTY PROTECTED BY THEFT POLICY DEEMED IMMATERIAL TO THE LOSS, INSURER LIABLE
A federal District Court Judge in the Houston Division of the Southern District of Texas recently concluded that a breach of a policy warranty by a trucking company that its terminals are “100% fenced” was found to be immaterial based on the facts of the loss, and coverage was afforded. In W.W. Rowland Trucking Co., Inc. v. CRC Services, Inc., No. 4:12-cv-00091 (S.D. Tex. January 13, 2013), Judge Hughes granted summary judgment in favor of the insured after finding that the thieves created their own opening in a fence through which a truckload of good was stolen. And, despite a warranty that the terminal was 100% fenced, the alleged breach of warranty by the insured was immaterial to the loss. Accordingly, summary judgment was granted in favor of the insured.