Cyprus Amax Minerals Company, Petitioner v. Lexington Insurance Company; Zurich Specialities London Limited; And…

Summary

The Colorado Supreme Court reversed summary judgment for three excess-liability insurers that had refused to indemnify Cyprus Amax's approximately $31 million settlement with Coeur d'Alene Mines over landslide damage to the Golden Cross Mine. It held that a court assessing the possibility of indemnity coverage must read the operative complaint liberally in favor of the insured and, where coverage is colorable, may consider extrinsic evidence; that repair and stabilization costs and loss of use qualify as 'property damage' under policies lacking an economic-loss exclusion; and that the landslide itself was the 'loss' or 'accident' triggering coverage, with no further causal nexus between Cyprus's alleged misrepresentations and the damage required. Because genuine issues of material fact remained, the court remanded for determination of the compensable portion of the settlement. No separate opinions were filed.