Liberty, Ace Must Defend Hilco Appraisal Units, Ill. Court Says

Law360, New York (March 17, 2014, 8:31 PM EDT) -- An Illinois appeals court ruled Monday that Liberty Surplus Insurance Corp. and an Ace Ltd. insurer had a duty under professional liability policies to defend two Hilco Trading LLC subsidiaries against claims that they "grossly inflated" loan collateral appraisals.

Reversing a lower court's decision, the appeals court accepted Hilco Appraisal Services LLC and Hilco Enterprise Valuation Services LLC's arguments that the underlying suits involved professional services provided to a “third party,” as required by Liberty and Ace unit Illinois Union Insurance Co.'s policies.

The dispute was...
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