Battery Co. Wants Insurer To Cover Class Suit Costs

Law360, New York (July 9, 2010, 4:05 PM EDT) -- Interstate Battery System of America Inc. has filed a lawsuit claiming Federal Insurance Co. breached a $3 million portfolio liability policy by failing to indemnify the company against allegations that it sold replacement batteries at inflated prices.

Federal had no legal basis under California law to support its refusal to cover litigation costs or indemnify against an underlying class action lodged in California, according to a seven-page complaint submitted Thursday in the U.S. District Court for the Eastern District of Texas.

Interstate, a manufacturer of automotive...
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