A unit in the Liberty Mutual Insurance Group won in coverage disputes with another insurer over the death of a construction worker, with a federal appellate court upheld a lower court decision.
A large concrete panel collapsed and killed a worker while working on a construction site in New Kensington, Pennsylvania, according to Thursday's ruling by the 3rd U.S. Circuit Court of Appeals in Philadelphia in Liberty Mutual Insurance Co. v. Penn National Mutual Casualty Insurance Co.
Liberty Mutual Insurance Co.'s insured, Pittsburgh-based Cost Co., was a masonry subcontractor on the project and Cost further subcontracted with Monongahela, Pennsylvania-based Pittsburgh Flexicore Co., Penn Nationals insured, for the concrete panels.
The subcontract agreement contained a security clause stating that Flexicore was solely responsible for the health and safety of its employees and required it to obtain general liability insurance and cover me Cost as an extra insured.
The killed worker's widow filed an incorrect death and survival measure against defendants including cost and Flexicore, according to the verdict. After Penn National denied Cost's request to defend and indemnify it, Liberty defended Mutual Cost, and Penn National defended Flexicore. The dispute was settled for an undisclosed amount.
Liberty Mutual then sued Penn National in the U.S. District Court in Pittsburgh and demanded a refund for the amounts they had paid to defend and reimburse Cost. Each insurer requested a summary judgment.
The District Court ruled in favor of Liberty Mutual and was upheld by a unanimous three-judge in the Court of Appeal.
, it was stated in the panel's decision.
In addition, the district court concluded that since the underlying dispute involved "several claims against several defendants, covered by several insurers, the settlement made it impossible to establish the exact basis of Costs and Flexicore's liability", it stated. 1
Lawyers. in the case did not respond to a request for comment.