Third Circuit Court of Appeals Gives Sapa Another Chance to Settle Lawsuit 

Sapa Extrusions Inc. (Sapa), an aluminum manufacturer that makes metal frames that hold glass panes of windows in place, has been given another chance by the third Circuit Court of Appeals, to pursue coverage under nine liability insurance policies for its costs to defend and settle litigation over its alleged sale of faulty window components.

A three-judge appellate panel found the previous federal ruling had the correct analysis in regard to some of the policies in Sapa’s dispute.

“It is now ordered and adjudged by this court that the judgment of the United States District Court for the Middle District of Pennsylvania is hereby affirmed in part, vacated in part, and remanded in part,” a portion of court documents reads.

According to court documents, a main concern was whether Marvin Lumber & Cedar Co.’s (MLCO) actions against Sapa caused “an accidental occurrence” that was within its policy coverage. Court documents mentioned the panel stated the U.S. District Court judge “was right” when he stated coverage was unavailable under 19 of Sapa’s policies that define an occurrence as an accident.

“… for the nineteen policies that contain the accident definition of “occurrence,” under Kvaerner, CPB, and Specialty Surfaces, Marvin’s allegations—which, at their core, are solely for faulty workmanship—do not trigger coverage,” a portion of court documents reads.

Originally the lawsuit alleged Marvin, of MLCO, “suffered financial losses” due to defective aluminum components used in its windows and doors that Sapa provided. Court documents state between 2000 and 2010, Marvin and a subsidiary purchased approximately 28 million extrusions from Sapa, which oxidized and broke down shortly after they were installed. In the original complaint, Marvin stated it suffered “substantial” losses on most of its purchased extrusions. Court documents state that suit was previously settled.

The panel emphasized it was not taking a position on whether Sapa will be able to secure coverage, but said it should be given a chance to “press its case before the lower court.”

Currently Sapa has been given another chance by the third Circuit Court of Appeals, to pursue coverage under nine liability insurance policies for its costs to defend and settle litigation over its alleged sale of faulty window components.

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