Insurer Needn't Cover Ford Dealer In Rebate Suit: Judge

Law360, New York (May 24, 2011, 7:55 PM EDT) -- A Louisiana federal judge ruled Tuesday that Federal Insurance Co. has no duty to defend a Ford Motor Co. dealer from an underlying class action alleging it failed to provide customers with manufacturer rebates on their vehicle purchases.

Federal Insurance is correct in concluding that neither the excess coverage nor the umbrella coverage it issued to Lamarque Ford Inc. mandate that it pay the class action's defense costs, according to U.S. District Judge Eldon E. Fallon.

The dispute dates back to August 2002, when a class...
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