In American Electric Service Power Co. Inc. v. Affiliated FM Insurance Co., No. 07-31061 (5th Cir. (La.) Jan. 21, 2009), the Fifth Circuit Court of Appeals concluded that an insurance policy covering a utilities conglomerate and "any subsidiary corporation" was unambiguous and did not cover the conglomerate’s subsidiary LLCs. The court found the term "corporation" to be "clear and explicit" and stated that interpreting the term to exclude unincorporated entities does not lead to "absurd consequences."
posted for Elizabeth Miller