Colony Must Cover Plumbing Co. Suits, 5th Circ. Says

Law360, New York (August 27, 2012, 5:47 PM EDT) -- In a split decision, the Fifth Circuit on Friday reversed a lower court’s ruling that Colony National Insurance Co. wasn’t required to indemnify Unique Industrial Product Co. for claims in two underlying lawsuits over defective plumbing products, saying Colony actually had a duty to cover Unique.

The Fifth Circuit said the Texas federal court inappropriately relied on extrinsic evidence — specifically, an affidavit and Unique’s insurance application — when it determined that a known-loss exclusion in Unique’s commercial general liability policies allowed Colony to deny it...
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