Insurers Must Face Lumber Liquidators' $36M Coverage Battle

Law360 (September 11, 2019, 3:59 PM EDT) -- A group of excess insurers must face Lumber Liquidators' claims that they should help cover aspects of the flooring company's $36 million settlement over formaldehyde in its laminate flooring, a Wisconsin state judge said.

Lumber Liquidators Inc. can pursue its case against Federal Insurance Co., Continental Casualty Co. and American Guarantee & Liability Insurance Co. since it plausibly accused them of failing to cover about $14 million in legal defense costs that might be covered under their excess insurance policies, Circuit Court Judge Rhonda L. Lanford said Monday in refusing to dismiss the case.

A fourth insurer, St. Paul Fire &...

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