Colony Need Not Defend Insured's Predecessor: 5th Circ.

Law360, Chicago (February 22, 2012, 4:51 PM EST) -- The Fifth Circuit found Monday that Colony National Insurance Co. does not owe defense costs to lifting equipment manufacturer Manitex LLC in underlying litigation over a crane accident, finding Manitex did not assume its predecessor-in-interest's tort liability to trigger coverage.

The appeals court reversed a Texas federal court's summary judgment in favor of Manitex and remanded the case for entry of summary judgment for Colony. It found that the policy was unambiguous; that Manitex's purchase agreement in which it assumed contractual liabilities was not an insured...
To view the full article, register now.