Insurer Off Hook For Calif. Mechanics' Wage-Hour Suit

Law360, New York (October 7, 2013, 6:28 PM EDT) -- A California appeals court on Friday excused a Zurich Insurance Group Ltd. unit from covering eight car dealerships against a wage-and-hour class action in federal court, refusing to interpret broadly a “poorly” worded coverage provision.

Upholding a lower court ruling in the case, the appeals court ruled that the employment benefit liability endorsement in Mid Century Insurance Co.'s general liability policy did not require the insurer to defend the dealerships against a lawsuit brought on behalf of auto mechanics.

According to the insurer, there was no...
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