6th Circ. Undoes Travelers Win In Subcontractor Fight

Law360, New York (July 14, 2011, 6:17 PM EDT) -- The Sixth Circuit on Thursday reversed a ruling that let Travelers Indemnity Co. off the hook in an insurance fight with Mosser Construction Inc. over a failed structural backfill that a subcontractor supplied for a wastewater facility, finding the policy exclusion at issue ambiguous.

The dispute involves whether Gerken Materials Inc., the company that supplied the allegedly faulty backfill to Mosser, qualified under the contract as a subcontractor or was barred from coverage under a policy exclusion.

U.S. District Judge Jack Zouhary had found in October...
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