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ALL HANDS ON DECK– INSURANCE: How does a mechanical breakdown exclusion apply? Infinity County Mutua

In Infinity County v. Tatsch, the 4th Court granted en banc review. In a prior opinion, the panel applied, for the very first time, a mechanical breakdown exclusion in an automobile policy. The injection of contaminated fuel damaged the insured’s truck. The panel majority originally held the mechanical breakdown exclusion applied; the dissent would have held the exclusion did not apply.

On en banc review, the majority held neither party presented sufficient summary judgment evidence to conclusively establish whether or not the mechanical breakdown exclusion applied, and remanded for further proceedings. The dissent would have held the evidence conclusively established the exclusion did apply.

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