Oxford Aviation, Inc. v. Global Aerospace, Inc., No. 11-2208 (1st Cir. 2012)
Annotate this CaseOxford contracted with Airlarr, to work on Airlarr's airplane at an estimated cost close to $70,000. The work was complete in 2007 and, in 2010, Airlarr sued for breach of contract, breach of express and implied warranties, and state-law claims. The complaint alleged that a window cracked during the flight home and listed various defects: uncomfortable seats, leaking fuel injectors, a cracked turbocharger, and improperly installed carpet. Oxford notified Global, which had issued Oxford a commercial general liability and requested that Global defend it. Global disclaimed both coverage and duty to defend. The district court granted summary judgment in favor of Global. The First Circuit vacated with respect to duty to defend. Duty to defend is ordinarily broader than its duty to indemnify. In Maine, the insurer must defend if the claims in the complaint create even a remote possibility of coverage. If Airlarr proves its case, there will likely be little indemnification since most of the claimed injuries appear to be covered by exclusions, but the duty to defend is triggered by any realistic possibility of any damage that might be within coverage and outside the exclusions and the damaged window creates that prospect.
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