Insurer Sued Over Coverage For Defective Pipe Suits

Law360, New York (October 26, 2011, 9:07 PM EDT) -- Pipe manufacturer J-M Manufacturing Co. Inc. launched a lawsuit Tuesday in California accusing Gerling America Insurance Co. of failing to defend and indemnify the company in wide-ranging litigation over J-M's allegedly defective PVC pipes.

California-based J-M alleges that Gerling breached its insurance contract by denying coverage despite a policy outlining Gerling's obligation to cover property damage arising from goods or products sold or distributed by J-M.

“Gerling failed to conduct any proper investigation into the claims being tendered but instead subjected its insured to substantial prejudice...
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