5th Circ. Affirms Liberty Mutual Win In $13M Katrina Row

Law360, New York (November 12, 2014, 4:50 PM EST) -- The Fifth Circuit on Tuesday upheld a lower court's ruling in an insurance dispute arising from a fire in a Hurricane Katrina victim’s trailer, ruling that a subcontractor wasn’t responsible for the fire and that its insurer, Liberty Mutual Insurance Co., should be reimbursed for the underlying $12.75 million settlements.

The circuit panel said that subcontractor MMR Constructors isn’t obligated to indemnify construction company Fluor Enterprises Inc. because its contract didn’t require the subcontractor to test the trailer’s liquid propane detector, the failure of which contributed to the fire in the underlying suit.

The panel’s ruling upholds a lower court’s decision...

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