Lexington, Westchester Fend Off $6M Coverage Suit

Law360, New York (October 6, 2010, 4:44 PM EDT) -- A federal judge has decided to accept a lowball appraisal in an insurance coverage suit brought by clothing importer Amerex Group Inc., allowing excess insurers Lexington Insurance Co. and Westchester Surplus Lines Insurance Co. to dodge Amerex's $6.3 million demand.

Judge Harold Baer of the U.S. District Court for the Southern District of New York decided to adopt an insurer-friendly appraisal of damage to an Amerex warehouse over Amerex's objections that the long, contentious appraisal had become more like an arbitration.

Using the contested appraiser's findings,...
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