US Fire On Hook For Denying Coverage In FLSA Action

Law360, New York (September 23, 2010, 7:25 PM EDT) -- U.S. Fire Insurance Co. has lost a bid to dismiss a lawsuit alleging it improperly denied coverage to a California company that had battled with its employees over alleged Fair Labor Standards Act violations.

Judge S. James Otero of the U.S. District Court for the Central District of California swatted away USFIC's Aug. 13 motion to dismiss Wednesday, ruling that the insurance company had not proven it had not acted in bad faith when it withheld legal-defense costs and settlement fees to Professional Security Consultants Inc....
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