Erie Insurance Property & Casualty Co. v. Chaber (Signed Opinion)Annotate this Case
After soil and rock slid down a hill located to the rear of Responents’ property and damaged a building, Respondents submitted a claim for property damage to Erie Insurance Property, their insurance carrier. Erie denied coverage based upon its conclusion that Respondents’ loss was not covered due to the policy’s earth movement exclusion. Respondents sued Erie and Stephen Myers, an adjuster for Erie (collectively, Petitioners), seeking a declaratory judgment as to whether coverage existed. The circuit court granted declaratory judgment in favor of Respondents. The Supreme Court reversed and remanded the matter with instructions to enter declaratory judgment for Petitioners, holding (1) the plain and unambiguous terms of the ensuing loss provision of the policy provided a narrow exception to the earth movement exclusion and permitted coverage for the portion of the loss caused by glass breakage; and (2) the other damage caused by the earth movement was not covered.