Insurance – CGL – Contract-based liability

The phrase “legally obligated to pay as damages” in a commercial general liability policy covers only liability arising in tort and does not provide coverage for liability arising from a breach of contract.

López & Medina Corp. v. Marsh USA, Inc., et al. (Lawyers Weekly No. 01-026-12) (25 pages) (Torruella, J.) (1st Circuit) Appealed from the U.S. District Court for the District of Puerto Rico (Docket No. 10-1702) (Jan. 26, 2012).