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US Appeals Court: Robbins is ‘victim of its own delay’ in insurance coverage loss in a case involving $40 million

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US Appeals court rules in favour of Insurance company Maxum Indemnity Co. against The Robbins Company.  Earlier a lower court had ruled that Robbins' insurance policy did not cover Robbins' dispute initiated by a third-party, JCM Northlink, LLC. 

Dispute involves Robbins supplying a Tunnel Boring Machine to JCM for Seattle’s Northgate Link Extension project. In May 2016, JCM filed a request for arbitration against Robbins, claiming that JCM suffered in over $40 million in damages over delays caused by defects in the Robbins TBM.

https://www.lexology.com/library/detail.aspx?g=a6b7569a-f0c6-43f6-a11b-afd3bc7292fb

Now also the federal appeals court says that Maxum Indemnity Co., (a Hartford Financial Services Group unit) is not obligated to defend Robbins or indemnify a tunnel-boring machine manufacturer in an arbitration proceeding. Even worse. the court says the that outcome might have been different had the policyholder (Robbins) more promptly submitted an itemization of the damages being sought.

https://www.businessinsurance.com/article/20190813/NEWS06/912330126/Policyholder-deemed-victim-of-its-own-delay-in-coverage-loss

 

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