9th Circuit Affirms Application of "Rain, Snow, Ice . . ." Exclusion To Excessive Ice Formation In Cold Storage Facility.
In Terminal Freezers, Inc. v. US Fire Insurance (.pdf), the 9th Circuit affirmed summary judgment against a cold storage terminal operator on a first party coverage claim arising from excessive ice in a malfunctioning freezer. The policy excluded coverage for “loss of damage caused by or resulting from faulty, inadequate and defective workmanship,” and the insurer had presented undisputed expert testimony to the trial court that the excessive ice resulted from an improperly installed vapor retarder. The policy, however, also provided coverage if faulty workmanship led to a covered cause of loss. But the policy included an exclusion for ice and a number of other natural elements including “rain, snow, sleet, sand, and dust.”
The insured invoked the canon of noscitur a socii to argue that “ice” as used in the policy was limited to ice in its “natural form” as opposed to ice made by a refrigeration system. The canon provides that the meaning of questionable or doubtful words may be ascertained by reference to the meaning of other words or phrases associated with it. The 9th Circuit, declined to apply the canon, however, because it concluded that the policy language was clear. Citing Webster’s Third New International Dictionary, it observed that “ice”, as commonly used, means “water reduced to the solid state by cooling.” As a result, there was no ambiguity that permitted use of any canon of construction.
