A federal appeals court on Friday upheld a $ 2 million verdict against a Chubb Ltd. entity in connection with fabric lost after the company that owned the warehouse where it was stored filed for bankruptcy.
Chubb unit Federal Insurance Co. had issued a sea freight insurance to New York-based Fabrique Innovations Inc. that covered fabric and plush goods that were "temporarily stored" on a schedule of specific locations and other locations that it rented or operated, according to the 2nd U.S. Circuit Court of Appeals decision. in New York and Fabrique Innovations, Inc., DBA Bicycle Enterprises v. Federal Insurance Co.
In September 2016, Fabrique filed an insurance claim under the policy for the loss of approximately $ 1
The goods were lost after the company that owned and operated the warehouse, Hancock Fabrics Inc., filed for bankruptcy and was authorized by the Bankruptcy Court to liquidate its holdings, including Fabricque's goods, by closing the sale, according to the decision.
Following Chubb's rejection of his claim, Fabrique filed a lawsuit against the insurer at the New York District Court, which ruled in its favor and gave Fabrique a summary judgment on liability and damages.
The verdict was upheld by a unanimous three judges appealing to the court panel. "Fabricque's loss of its goods from Hancock's warehouse was covered under the policy. First, the policy said just as much, "the decision said.
"Second, Fabrique's loss was not subject to an applicable political exclusion, it said, to confirm the lower court's decision.
Fabrique's attorney Joshua L. Blosveren, a partner with Hoguet Newman Regal & Kenney LLP in New York, said in a statement, "We are pleased that the Second Circuit has in all respects confirmed Judge (George B.) Daniel's decisions on liability. and damages. Fabrique is looking forward to getting the insurance revenues that have long been due to it.
Chubb's lawyer did not respond to a request for comment.