Md. Court Rejects $1M Sanction Over Insurer Conduct

Law360, New York (January 28, 2013, 4:48 PM EST) -- A Maryland appeals court on Thursday overturned a $1 million default judgment issued as a sanction against a defendant when the defendant's insurer didn't follow a scheduling order in a lawsuit over a 5,400-gallon gasoline leak that contaminated nearby property.

The Maryland Court of Special Appeals held that while courts can impose monetary sanctions for violations of scheduling orders, they lack the power to impose a sanction on a party based solely on the actions of the party's insurer.

"The authority to sanction is grounded in...
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