Insurance – Loss of use – Wireless communications

A $13.3 million judgment — against the insurers of a manufacturer of a power converter that caused wireless communication network outages in 2003 — must be vacated because of an erroneous jury instruction regarding policy language addressing coverage for “loss of use of property that is not physically injured.”

Vicor Corporation v. Vigilant Insurance Company, et al. (Lawyers Weekly No. 01-069-12) (41 pages) (Howard, J.) (1st Circuit) Appealed from a judgment entered by Young, J., in the U.S. District Court for the District of Massachusetts. Bruce E. Falby, with whom Bruce S. Barnett and DLA Piper LLP were on brief, for Vigilant Insurance Company and Federal Insurance Company; Matthew J. Lodge, with whom Christopher R. Carroll and Carroll McNulty & Kull were on brief, for Continental Casualty Company; Kevin J. O’Connor, with whom Peter C. Netburn, Matthew C. Kalin and Hermes, Netburn, O’Connor & Spearing were on brief, for the plaintiff-appellee (Docket Nos. 09-1470, 1494 and 1589) (March 16, 2012).