Continental Fights Bad Faith Claims In FCA Coverage Battle

Law360, Chicago (December 13, 2012, 3:46 PM EST) -- Continental Insurance Co. asked a Louisiana federal court for partial summary judgment Wednesday on bad faith claims brought by Bollinger Shipyards Inc., arguing that its coverage obligations were never triggered for a $200 million False Claims Act suit over failed modifications the company made to government boats.

Continental argued that it could not have been arbitrary or capricious for refusing Bollinger's demand for defense and indemnity coverage because it issued excess policies to Bollinger and there is $26 million, over multiple years, in underlying insurance limits...
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