A federal appeals court reversed the lower court’s decision on Thursday, ruling that Chubb Ltd. did not have to defend itself. pig farm in a controversial case in state court, in a lawsuit filed against it by two other insurance companies.
Chubb Unit Indemnity Insurance Co. of North America, Ohio Farmers Group unit Westfield Insurance Co. and AmeriTrust Group Inc. Star Insurance Group unit at one time provided all insurance to large hog farms operated by Griggsville, Illinois-based Sandstone North LLC and Sandstone South LLC, according to the decision of the 7th US Circuit Court of Appeals in Chicago i Indemnity Insurance Co. of North America v. Westfield Insurance Co. and Star Insurance Co.
In May 2016, a jury reached a verdict in Sandstone’s trial on a private lawsuit alleging that it mismanaged its properties through improper handling. pig waste, which resulted in bad and bad smell and toxic gases, among other charges.
The trial focused on whether Indemnity should have protected Sandstone. The three-judge appeals court decision overturned a lower court ruling that Indemnity must pay an equal share of the defense costs.
“Since its insurance is greater than Star and Star has a duty to defend, the Indemnity’s ‘other insurance’ provision relieves any duty to defend Sandstone” in the main claim, the said the decision, changing the lower court.
Attorneys for Westfield and Star did not respond to a request for comment, or there was no comment, but Chubb’s attorney submitted a question to Chubb, but he did not respond.