Port Authority of New York and New Jersey v. Affiliated FM Insurance Company
United States Court of Appeals for the Third Circuit
311 F.3d 226 (2002)
Although more than 1,000 Port Authority (plaintiff) facilities contained asbestos, none exceeded EPA safety standards, and only 13 abatement projects were actually carried out; the Port Authority nonetheless sought insurance recovery from Affiliated FM and other insurers (defendants) under all-risk property policies, arguing the mere presence of asbestos triggered coverage for physical loss or damage. The district court granted the insurers summary judgment, finding no evidence of increased asbestos levels or contamination.
Whether physical loss or damage to a property due to asbestos occurs due to the mere presence of asbestos, or a threat of the release of asbestos, if the structures are still usable and the presence of asbestos has not contaminated the property.