Travelers Owes Beverage Co. Defense In Calif. Wage Suit

Law360, New York (August 30, 2012, 4:54 PM EDT) -- A California federal judge on Thursday ruled that Travelers Casualty and Surety Co. of America must indemnify Classic Distributing and Beverage Group Inc. for defense costs in an employment class action it settled, later claiming Travelers had handled it in bad faith.

In granting partial summary judgment to Classic, U.S. District Judge Gary Allen Feess said a wage-and-hour claim exclusion in the employment practices liability policy Travelers issued to Classic was invalid and unenforceable. The judge said the policy provided for indemnification coverage for the underlying...
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