Liberty Can Recoup $1M Payout On Crash Deal, 5th Circ. Says

Law360 (January 28, 2021, 8:53 PM EST) -- The Fifth Circuit ruled Wednesday that a Liberty Mutual unit can recoup its $1 million payment toward a settlement of two lawsuits over a fatal accident involving one of policyholder Darling Ingredients Inc.'s transportation contractors, finding that Darling was required to pay that sum as a deductible.

A three-judge panel of the appeals court reversed a Mississippi federal judge's ruling and held that an endorsement in a $2 million "business auto" policy that Liberty Mutual Fire Insurance Co. issued to Darling is enforceable and obligated the food ingredients company to pay a $1 million deductible before the insurer's coverage obligations would...

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