TSH&D Secures Judgment for NextSun Energy Littleton in Insurance Coverage Claim for Losses Due to Town-Ordered Shutdown

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TSH&D partner Steven Torres was featured in “Energy company covered for losses due to town-ordered shutdown” in the October 8 issue of Massachusetts Lawyers Weekly. Steve and Brooks Glahn, Of Counsel to TSH&D, represented NextSun Energy Littleton in a suit against its insurance company for lost power production it sustained due to a town-ordered shutdown of more than 11,000 solar panels following a fire that damaged 88 panels. The insurer argued the lost revenue from the undamaged panels was not covered because it was not the result of direct physical damage from a covered peril as required by the terms of the policy. U.S. District Court Chief Judge F. Dennis Saylor IV disagreed and granted summary judgment for NextSun on its breach-of-contract claim. He stated “In short, the plain text of the policy here indicates that, once direct physical damage from a covered peril causes an interruption of energy generation, any increase in the duration of the interruption caused by the enforcement of an ordinance or law extends the lost-income coverage. The enforcement of the ordinance or law does not need to be caused by direct physical loss associated with the covered peril.” Read the story in Massachusetts Lawyers Weekly.

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