2nd Circ. Says Insurer Owes For Inventory Sold Off In Ch. 11

Law360 (April 9, 2021, 8:13 PM EDT) -- The Second Circuit on Friday upheld a ruling that apparel company Fabrique Innovations Inc. is entitled to $2 million in insurance payouts based on its loss of inventory stored in a warehouse owned by retailer Hancock Fabrics and sold during that company's Chapter 11 case.

In its decision, the Second Circuit said it agreed with a New York district court that Federal Insurance Co. is on the hook for the $1.2 million in damages Fabrique was awarded for the loss of its property — blankets and stuffed animals awaiting sale and shipment to its customers — in the Hancock sale as well...

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