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Criminal Acts Exclusion Bars Coverage for Damage Caused by Pot Growing Tenant

In the case of United Specialty  Insurance Company v. Barry Inn Realty, Inc., the United States District Court for the Southern District of New York held that the policy exclusion for “damage caused directly or indirectly by . . . . [d]ishonest or criminal act[s] by . . . anyone to whom [Defendant] entrust[ed] the property. . . .” barred coverage, where the tenant, to whom the Court found the property owner had entrusted the premises, established a marijuana growing operation in the premises causing extensive structural damage. Read more…

by Rosa  M. Feeney, Esq.

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