Plaintiff's house was damaged when its concrete slab foundation settled, sank, and cracked. Defendant disclaimed coverage for the damage, relying on terms of the insurance policy which, in pertinent part, excluded losses due to "earth movement, sinking, rising or shifting" and due to the "settling, shrinking, bulging or expansion, including resultant cracking, of pavements, patios, foundations, walls, floors, roofs or ceilings."

The Second Department found for the insurer, in Cali v. Merrimack Mut. Fire Ins. Co., which was decided on August 14, 2007. Pointing to the plain meaning of the policy's language, the court said it had no choice but to conclude that there was no coverage for damages resulting from earth movement, even when the cause of the earth movement is a covered peril.