Discovery Sanctions Trimmed In Insurance Fraud Row

Law360, New York (January 8, 2014, 5:47 PM EST) -- A judge went too far in discovery sanctions against a security company that was sued for workers' compensation insurance fraud and allegedly withheld electronic payroll records, a New Jersey appellate court found Wednesday, upending judgments for Liberty Mutual Insurance Co. and the state.

As part of the 2009 sanctions against Viking Industrial Security Inc. and related defendants, Liberty Mutual and the state won a spoliation ruling that deemed critical sections of the insurer's complaint supporting workers' compensation, insurance and common law fraud claims as conclusively established....
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