Overview

HOLDINGS: [1]-A property insurance policy issued to a wine collector did not cover financial losses sustained when the insured bought counterfeit wine because there was no physical loss or damage to the wine collection and the insured's loss of money was not a covered peril; Is definePunitive Damages? Punitive damages, are damages assessed in order to punish the defendant for outrageous conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit. [2]-Although the policy, which insured against direct and accidental loss to covered property, did not expressly limit itself to physical loss or damage, the fundamental nature of property insurance was such that the policy covered only harm to the wine itself, such as fire or theft, and did not insure against financial losses; [3]-Because the insured failed to establish that any type of financial loss was covered, it was irrelevant that the policy did not specifically list fraud as an exclusion; [4]-Parol evidence concerning the insured's expectations was not admissible because the policy was unambiguous.

 

Outcome

Judgment affirmed.