Case of note: Oregon. Dishonest or criminal acts exclusion applies to criminal acts of tenants
August, 2004
Tualatin Valley Housing Partners v. Farmers Ins. Exchange, Case No. 03006-06731 (Multnomah County Circuit Court), arose out of an insured's claim for indemnification of damage caused by a tenant manufacturing methamphetamine in an apartment owned by the insured. The insurer denied coverage based upon the pollution and criminal acts exclusions contained in the policy, and the insured brought suit.
The language of the criminal acts exclusion at issue excluded coverage for damage resulting from the criminal acts of "anyone to whom the property is entrusted for any purpose." The court agreed with the insurer that this language unambiguously excluded coverage for damage resulting from the criminal acts of tenants, because tenants were clearly within the plain and ordinary meaning of "anyone to whom the property is entrusted for any purpose."