Liberty Needn't Cover Pizza Hut Owner's Wage Payment Suits

Law360 (March 9, 2021, 6:39 PM EST) -- A Wisconsin appeals court has freed Liberty Mutual Insurance Co. from having to defend a Burger King and Pizza Hut franchise owner in six proposed class actions alleging the owner underpaid delivery drivers, ruling that the underlying claims are not covered by the policy.

In an unpublished opinion, a three-judge panel said Monday the Milwaukee County circuit court did not err in holding that Liberty Mutual is not obligated to defend or indemnify V&J Employment in the ongoing suits that accuse the company of improperly withholding tips and other fees from staff.

The underlying actions involve wage claims but not employee...

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