U.S. Speciality Ins. Co. v. D S Avionics

Summary

The court held that D S Avionics’ aircraft claim fell within the policy’s coverage for direct physical loss caused by an accident, even though the airport owner intentionally blocked and retained the aircraft and the aircraft was later recovered. The court also held that the policy’s Conversion Exclusion did not apply, and therefore reversed summary judgment for the insurer. The bad-faith claim and any policy damages were remanded for further proceedings because the district court’s legal basis for rejecting them was erroneous.