Insurer Off Hook For Wage Case Defense: Judge

Law360, New York (May 6, 2009, 12:00 AM EDT) -- State wage assessments and costs associated with defending against a wage class action that together exceed $500,000 do not constitute a loss under a California-based contractor's directors and officers insurance policy, a federal judge has ruled.

U.S. Specialty Insurance Co. met its burden to show the litigation and wage assessments did not constitute loss under the policy, Judge Alicemarie H. Stotler ruled Tuesday in the U.S. District Court for the Central District of California in granting summary judgment for the insurer.

Employees of Jeff Tracy Inc.,...
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