Litigation

"The majority's failure to recognize this ambiguity will result in a financial burden on insureds of limited economic means," Justice Jorge Labarga wrote.

According to the complaint, the plaintiff's policy does not allow withholding labor as depreciation.

Factory Mutual paid Samsung $126 million of the $400 million claim, citing policy exclusions for events that occur off the insured property.

The lawsuit alleges that the 35 linked MSG companies paid "millions of dollars in premiums," but "instead of honoring their obligations, the insurers have paid nothing for the MSG Insureds' losses."

Whether a developer mistakenly believed it had the right to remove trees and dirt from a property was the deciding factor in the ruling.

Michael Pansini, counsel for the plaintiff, said he plans to appeal the decision, calling the statutory employer doctrine 'anachronistic.'