Another development on the issue of cyber damage as "physical loss and damage" within the definition of coverage.  U.S. Judge Bernard Friedman of the Eastern District of Michigan, in the K-Mart litigation has denied summary judgment to K-Mart which sought same in connection with its pre-year 2000 remediation efforts.  As such, he in essence has passed on the chance to define a standard to prove what steps are necessary for Y2K prevention to fall within the definition of "physical loss or damage."

The Judge determined that any such standard could not be established without first examining the alleged Y2K failures and eventual failures on a case-by-case basis.  At the same time however, the judge rejected a motion by the insurer defendants, which sought a finding that the alleged "sue and labor: expenditures for which K-Mart seeks reimbursement are time-barred by the one-year suit limitation clause.

The Federation

-- Anonymous, August 10, 2001

Answers

Nice link spider...never been there before. Thanks.

-- Anonymous, August 15, 2001