Liberty Scores 5th Circ. Win On Contractors' Coverage

Law360, New York (March 30, 2011, 6:24 PM EDT) -- The Fifth Circuit on Wednesday upheld a ruling that a group of former Quixtar Inc. independent contractors' Liberty Mutual Fire Insurance Co. policy does not cover a fight with the multilevel marketing company over noncompete agreements.

A three-judge panel for the U.S. Court of Appeals for the Fifth Circuit affirmed a district court's October ruling that 26 so-called independent business owners were not insured under the Liberty commercial and general liability policy.

The IBOs, who had owned Quixtar distributorships and sold products for the company, sued...
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