Insurer's Appeal Over $27M Accident Payout Backfires

Law360, New York (April 7, 2011, 6:15 PM EDT) -- The Second Circuit ruled Thursday that Federal Insurance Co. must pay all of a $26.5 million settlement over a tow truck operator's accident, reversing a decision requiring the insurer to pay only half that amount.

The U.S. Court of Appeals for the Second Circuit's reversal in favor of defendant-appellees American Home Assurance Co. and National Union Fire Insurance Co. of Pittsburgh, Pa., struck a blow to Federal, which had appealed the lower court ruling.

Federal launched the action in July 2007 as a subrogee of American...
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