Federal Can Deny Coverage In Gas Station Buyers' $2M Accord

Law360, Philadelphia (August 20, 2012, 4:59 PM EDT) -- Federal Insurance Co. is not on the hook for at least $2 million in damages stemming from a class action settlement agreement between gas station operators and Uni-Marts LLC, a federal judge in Pennsylvania said Friday after ruling that Uni-Marts’ fraudulent behavior triggered policy exclusions.

A class of operators sued Uni-Marts in 2007, accusing Uni-Marts of lying about the costs associated with running a gas station in order to induce them into purchasing the gas stations in 2004 and 2005. The company settled the suit for...
To view the full article, register now.