A federal appeals court says an insurer was not responsible for a loss of tons of lumber in Hurricane Katrina. Great Southern Wood Preserving Inc., whose YellaWood is promoted in television commercials by Jimmy Rane, better known as “Yella Fella,” had two shiploads of lumber delivered to Gulfport, Mississippi, in August 2005. The wood was off-loaded and stored in a port warehouse for delivery to treatment facilities when the storm hit. Great Southern suffered a huge financial loss and filed suit against American Home Assurance Co. The insurer refused to pay the claim, saying the lumber was not “in transit” within the meaning of the insurance contract. The lower court ruled in favor of the insurance company. Great Southern appealed and the U.S. Court of Appeals for the Eleventh Circuit panel affirmed the ruling.
Source: Associated Press
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