Many Tennessee premises liability claims revolve around determining who is responsible for an accident and who should pay. In some instances, however, liability is not contested. Instead, the parties must fight with insurers about the extent of the related damage and what must be covered.
In this recent insurance appeal, Jefferson County Schools sued Travelers Indemnity Company to provide full coverage of all of the damages related to a recent building collapse. One of the school district’s high school buildings collapsed during a rainstorm. After reviewing the damage, the Tennessee State Fire Marshal’s Office directed the School District to repair the collapsed building and to ensure that all repairs were taken to prevent a future collapse.
Travelers did not contest its obligation to pay for the repairs on the collapsed portion of the building, nor did it disagree with its obligation to pay for some of the repairs made to the existing uncollapsed building in order to prevent future collapses. Indeed, the company paid almost $900,000 in repairs to the school district. However, Travelers took issue with the final recommendation from the engineer whom the school district hired, which advised the school district to provide additional reinforcement to the walls at the school. Travelers argued that this recommendation was discretionary and that they did not need to pay for it. The school district argued that under the terms of the policy, Travelers was required to pay for all of the work necessary to comply with the ordinances of the state, and this was an ordinance, since it came directly from the fire marshal.