7th Circ. Maintains Liquor Liability Exclusion

Law360, New York (February 28, 2014, 5:05 PM EST) -- In Netherlands Insurance Company v. Phusion Projects, the Seventh Circuit ruled that the insurer of the makers of Four Loko has no duty to defend it in lawsuits alleging the alcoholic beverage caused serious injury and death. The court affirmed the Northern District Court of Illinois’ determination that the liquor liability exclusion precludes defense coverage for suits alleging harm caused by intoxication.

Phusion Projects Inc. and Phusion Projects (“Phusion”) manufacture Four Loko, a sweet malt liquor beverage. Originally an alcoholic energy drink, its name came from...
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