In cases in which courts have interpreted more recent policies in which property damage is defined as "physical" injury to tangible property, such courts have held that intangible damages, such as diminution in value, are not considered property damage. See, e.g., Wyoming Sawmills v. Transportation Ins. Co., 282 Or. 401, 578 P.2d 1253 (1978); Federated Mutual Insurance Co. v. Concrete Units, Inc., 363 N.W. 751, 757 (Minn. 1985).
(quoting Great N. Ins. Co. v. Benjamin Franklin Fed. Sav. and Loan Ass'n , 793 F. Supp. 259, 263 (D. Or. 1990) )). Cf.Wy. Sawmills, Inc. v. Transp. Ins. Co. , 282 Or. 401, 406, 578 P.2d 1253 (1978) (Including the word " ‘physical’ in the phrase ‘physical injury to ... tangible property’ ... negates any possibility that the policy was intended to include ‘consequential or intangible damage,’ such as depreciation in value, within the term ‘property damage.’ ").
(quoting Great N. Ins. Co. v. Benjamin Franklin Fed. Sav. and Loan Ass'n , 793 F. Supp. 259, 263 (D. Or. 1990) )). Cf. Wy.Sawmills, Inc. v. Transp. Ins. Co. , 282 Or. 401, 406, 578 P.2d 1253 (1978) (Including the word " ‘physical’ in the phrase ‘physical injury to ... tangible property’ ... negates any possibility that the policy was intended to include ‘consequential or intangible damage,’ such as depreciation in value, within the term ‘property damage.’ ").
. Cf. Wy.Sawmills, Inc. v. Transp. Ins. Co. , 282 Or. 401, 406, 578 P.2d 1253 (1978) (Including the word " ‘physical’ in the phrase ‘physical injury to ... tangible property’ ... negates any possibility that the policy was intended to include ‘consequential or intangible damage,’ such as depreciation in value, within the term ‘property damage.’ ").
(quoting Great N. Ins. Co. v. Benjamin Franklin Fed. Sav. and Loan Ass'n , 793 F. Supp. 259, 263 (D. Or. 1990) )). Cf. Wy.Sawmills, Inc. v. Transp. Ins. Co. , 282 Or. 401, 406, 578 P.2d 1253 (1978) (Including the word " ‘physical’ in the phrase ‘physical injury to ... tangible property’ ... negates any possibility that the policy was intended to include ‘consequential or intangible damage,’ such as depreciation in value, within the term ‘property damage.’ ").
(quoting Great N. Ins. Co. v. Benjamin Franklin Fed. Sav. and Loan Ass'n , 793 F. Supp. 259, 263 (D. Or. 1990) )). Cf. Wy.Sawmills, Inc. v. Transp. Ins. Co. , 282 Or. 401, 406, 578 P.2d 1253 (1978) (Including the word " ‘physical’ in the phrase ‘physical injury to ... tangible property’ ... negates any possibility that the policy was intended to include ‘consequential or intangible damage,’ such as depreciation in value, within the term ‘property damage.’ ").
QBE cannot rely on the isolated statement in Columbiaknit , made in a very different context, as authority for its sweeping proposition that "direct physical loss" requires physical damage in a circumstance such as this. QBE also cites Wyoming Sawmills v. Trans. Ins. Co. , 282 Or. 401, 578 P.2d 1253 (1978), which considered a policy covering property damage, defined as "physical injury to or destruction of tangible property." There, the Oregon Supreme Court held that "the inclusion of [the word "physical"] negates any possibility that the policy was intended to include "consequential or intangible damage," such as depreciation in value, within the term "property damage.
The gist of AFM's argument seems to be that, under Ferguson , 254 Or. at 510–11, 460 P.2d 342, the parties were not bound by the facts found by the jury in the underlying trial, and at most, FountainCourt established a mere possibility that the damages found by the jury were for “property damage” as defined in the insurance policies. In particular, AFM argues that the damages found by the jury in the underlying proceeding are not “property damage” as defined in the insurance policy, because the damages in the underlying proceeding could have included the costs of repairing “defective work” by Sideco, and “defective work” does not constitute property damage (citing Wyoming Sawmills v. Transportation Ins. Co. , 282 Or. 401, 578 P.2d 1253 (1978) ). As explained above, Ferguson does not require a court resolving an insurance coverage issue to disregard the nature of the damage award in the underlying action.
304 Or at 307. In Wyoming Sawmills v. Transportation Ins. Co., 282 Or. 401, 410, 578 P.2d 1253 (1978), this court had held that "the rule [precluding estoppel or waiver] must be limited to failure to assert an exclusion." Most jurisdictions have ruled that estoppel is not available to expand the coverage of a written policy so as to protect the insured against risks expressly excluded.
On the second point, Farmers relies on Wyoming Sawmills, Inc. v. Transportation Ins. Co., 282 Or. 401, 578 P.2d 1253 (1978). There, a lumber manufacturer sold a lumber company defective 2 X 4 studs that were used in a building.