When a computed tomography (CT) scanner was destroyed as a result of two fires at a storage facility, claims were presented and suits filed against the warehouse, Blocker Storage.

Associated paid its limit of liability and received a release from the insured for Associated and all of the related companies.

In Diagnostic Leasing, Inc. v. Associated Indem. Corp., No. 19-13535, 2022 U.S. App. LEXIS 17455 (11th Cir. June 24, 2022), the Eleventh Circuit Court of Appeals affirmed the district court’s grant of summary judgment for Associated Indemnity Corp. on Diagnostic Leasing, Inc.’s bad faith claims.

Blocker Transfer &Storage Co. "operated various warehouse storage facilities" that it owned or leased "as part of its business as a moving and storage company." Diagnostic Leasing was an equipment rental and leasing company.

In 1995, Blocker Storage stored Diagnostic Leasing’s CT scanner. Associated Indemnity insured Blocker Storage under the trade name "Fireman’s Fund Insurance Company." That same year, two fires at Blocker Storage’s warehouses damaged Diagnostic Leasing’s CT scanner.