Judge Sanctions Metal Co., Dumps $38M Coverage Claim

Law360, New York (September 30, 2011, 7:57 PM EDT) -- A West Virginia federal judge hit Felman Production Inc. with sanctions on Thursday, finding the company committed discovery abuses in its two-year coverage battle with three insurers over $39 million in damages related to a 2008 transformer failure at its metals plant.

In granting the summary judgment motion lodged by Industrial Risk Insurers, Westport Insurance Co. and Swiss Reinsurance America Corp., U.S. District Judge Robert C. Chambers dismissed with prejudice Felman's claim seeking a $38 million payment under the business interruption policy it purchased from the...
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