Nautilus Insurance v. Worldwide Aeros Corp.

MEMORANDUM *

Appellee Nautilus Insurance Company brought this action seeking a declaration that claims by the Norsworthy appellants against appellant Worldwide Aeros Corporation in an underlying state court tort suit are not covered by the insurance policy issued to Worldwide by Nautilus. The Norsworthies and Worldwide (“Norsworthy”) appeal the district court’s grant of partial summary judgment in favor of Nautilus. We affirm. As the parties are familiar with the facts, we do not recite them here.

ANALYSIS

We find that the loss is not covered by the policy on two independent grounds. First, the loss is outside the scope of “manufacturing.” Second, the loss is excluded as part of the Products / Completed Operations Hazard.

1. The Loss Is Outside The Scope of ‘‘Manufacturing’’

The policy limits coverage to claims arising out of “manufacturing exposure only.” Norsworthy can prevail only if “manufacturing” can reasonably be read to encompass training services offered appurtenant to the sale of a manufactured good. Such a reading is not reasonable. The ordinary meaning of “to manufacture” is “to make or process (a raw material) into a finished product.” Webster’s II New Riverside…