Continental Sinks Bad-Faith Claims In FCA Coverage Fight

Law360, Chicago (June 24, 2013, 5:23 PM EDT) -- A Louisiana federal judge on Monday axed Bollinger Shipyards Inc.'s claims that Continental Insurance Co. acted in bad faith when it refused to pay defense costs for a $200 million False Claims Act suit over faulty ships, saying Continental lacked a clear duty to pay under its excess policies.

U.S. District Judge Sarah S. Vance granted Continental's motion for partial summary judgment in the consolidated coverage litigation, finding that Continental had "reasonably believed" that to the extent its excess policies covered the government's lawsuit against Bollinger,...
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