Pan Am Equities, Inc. v. Lexington Ins. Co.

Pan Am Equities, Inc. v. Lexington Ins. Co.,  959 F.3d 671 (5th Cir. 2020)

Lexington Insurance Company was involved in a $6.8 million Hurricane Harvey-related dispute regarding the application of a "Named Storm" deductible as opposed to a "Flood" deductible.

Pan Am sued Lexington in the United States District Court for the Southern District of Texas in connection with two buildings that suffered flood (but not wind) damage as a result of Hurricane Harvey. Pan Am contended that the "Flood" deductible applied to the loss because (i) the damage fell within the definition of "Flood" and (ii) the "Flood" definition included language stating that it applied "regardless of any other cause or event contributing concurrently or in any other sequence of loss." According to Pan Am, the "Named Storm" deductible did not apply because it was contained in a deductible section labeled "Windstorm and Hail." Since the policy did not define "Windstorm," Pan Am claimed that the