Liberty Mutual Ducks Bad Faith Claim In Kmart Coverage Row

Law360, New York (December 19, 2013, 1:19 PM EST) -- A federal judge on Wednesday tossed Kmart Corp.’s bad faith claims against Liberty Mutual Fire Insurance Co. in the bargain retailer’s lawsuit over coverage for a settlement stemming from an in-store accident, finding the insurer’s denial of coverage was based on legitimate doubts.

The dispute arose when a Kmart shopper was struck by a falling baby car seat in a store. She sued Kmart and then added Footstar Inc. — the company that ran Kmart’s shoe department — to the complaint when she discovered one of...
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