XL May Face Sanctions For Destroyed Docs In Appraisal Suit

Law360, New York (July 18, 2012, 6:18 PM EDT) -- A New York state judge indicated Wednesday that he's inclined to sanction XL Specialty Insurance Co. for not preventing its underwriter from throwing away documents and a computer filled with evidence in a case over home-appraisal software XL had insured for lenders.

Judge Melvin L. Schweitzer said at the end of a hearing Wednesday that he is not yet sure what the appropriate remedy is, but he believed XL didn't do enough to protect the evidence from being thrown into a dumpster.

"There's no question that...
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