Berkshire Insurance Unit Sued by Liberty Mutual Over Settlement

A Liberty Mutual insurance unit sued a Berkshire Hathaway Inc. subsidiary for allegedly failing to settle a personal injury case involving a mutual insured party within policy limits, seeking reimbursement for $23.5 million paid after a jury verdict.

Berkshire’s National Fire & Marine Insurance Co. controlled the defense of the policyholder, US Foods, in a 2016 truck accident case, Liberty Insurance Underwriters Inc. said in a complaint filed Dec. 5 in the US District Court for the Central District of California.

The complaint alleges National Fire repeatedly ignored settlement opportunities that could have resolved the case within the combined ...