![]() We conclude such evidence establishes the welding defect was not apparent upon reasonable inspection, but was a latent defect, as a matter of law….To hold the reverse would be to render the phrase ‘latent defect’ meaningless and to transmute the insurance policy into a type of warranty. ![]() The expert was able to reach this conclusion only after examining an assembly drawing of the kettle, and stated that further analysis could be made by radiographic and ultrasonic testing. latent deficiency s one which is not apparent by reasonable inspection….Here, Acme’s expert established…that the kettle rupture was caused by inadequate welding due to a defective design of the welding. The court, after looking at conflicting case law and California’s Code of Civil Procedure, held that In support of this conclusion, we observe that the defect could only be found by after destructive testing was performed. In conclusion, the inadequate weld seam was an internal characteristic of the kettle which was not readily detectable upon reasonable inspection. The weld is just not adequate for the service intended.įireman’s concluded that the policy exclusion for “inherent vice and latent defect” applied and their report further explained: I believe that the kettle failure was principally due to poor welding techniques. Acme’s insurance claim was denied by Fireman’s on the ground that the loss was caused by a latent defect or inherent vice and was excluded.ĭuring the investigation of the claim, Acme had an expert examine the kettle. There, a steel kettle at one of Acme’s plants ruptured, allowing several tons of molten zinc to spill onto surrounding equipment. A good illustration of a latent defect can be found in Acme Galvanizing Co., Inc. ![]() Of course, even those definitions are subject to interpretation. See Board of Education of Maine Township High School Dist. “Latent defect,” on the other hand, generally refers to a defect not readily observable or discoverable upon reasonable inspection. Generally, “inherent vice” implies that no external or extraneous peril caused the loss rather, the loss or damage results from the internal composition of the property, or some aspect of the property that brings about its own destruction. While other exclusions are somewhat more straightforward – we all may have a good idea of what mold is – this exclusion first raises the question: What is a latent defect or inherent vice? This week’s review of common exclusions found within all-risk insurance policies focuses on the latent defect or inherent vice exclusion.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |