Here is the summary of the Apeals Coourts decision, and this was NOT a red tag program issue. This was an INSPECTION and CORRECTION issue!!! Here is the summary of the decision from the United States Court of Appeals for the Seventh Circuit.
Appellants Fun F/X II, Inc. and Cao Enterprises II, LLC (collectively “Fun F/X”) sought insurance coverage after a warehouse fire. The relevant insurance policy issued by appellee Frankenmuth Mutual Insurance Company provides that it does not cover losses if prior to the fire, the policy holder knew of a suspension or impairment in an automatic sprinkler system yet failed to notify Frankenmuth of the issue. Based on this policy exclusion, the district court granted summary judgment for Frankenmuth. We affirm.
Here are the facts from this case. It seems the fire resulted from inspection issues and the failure to have a “red-tag” program…