A theater-in-the-round was built in a basin surrounded by a drainage system involving manholes and underground pipelines to carry water from the parking lot away from the theater. A deluge of rain, abetted by partial blockage of the storm sewer system, resulted in water flowing through the theater's front doors and $150,000 damage to carpeting. Claim for the loss was denied by the property insurer under its policy (covering property loss except as specifically excluded) because of the following exclusion: "We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any other sequence to the loss:

"....Flood....including surface water, waves, tides, tidal waves, overflow of any body of water or their spray, all whether driven by wind or not....

"But if loss or damage by fire, theft, explosion, water that backs up from a sewer or drain or sprinkler leakage results, we will pay for that resulting loss or damage."

The insured sued the insurer for payment and appealed from a summary judgment award to the insurance company based on the applicability of the flood exclusion. It argued that the water was not "surface water" within the meaning of the exclusion and that, therefore, it was not applicable. The insured contended, alternatively, that at least some of the water was the result of sewer backup and that coverage, therefore, should be required.

The insurance company asserted that it had no liability because the carpet damage was caused entirely by surface water.

The appeal court concluded that, when flood was a contributing cause of loss, damage to the insured's carpeting was not covered by the policy. Though some of the water backed up from a sewer, which was not disputed, coverage was not warranted because of the explicit language of the exclusion.

The judgment of the trial court was affirmed in favor of the insurer and against the insured.

(FRONT ROW THEATER, INC., Plaintiff-Appellant v. AMERICAN MANUFACTURERS MUTUAL INS. COMPANIES ET AL, Defendants-Appellees. United States Court of Appeals for the Sixth Circuit. Nos. 92-4093 and 92-4104. March 15, 1994. CCH 1994 Fire and Casualty Cases, Paragraph 4988.)