Defense Company Sued by Insurer Over Grenade Litigation Payment

PACEM Defense LLC was hit with a suit from its insurer seeking a court declaration that the carrier owes no coverage for an $8 million consent judgment in a case alleging the defense parts manufacturer failed to deliver grenades meant for the National Police of Ukraine.

The commercial liability policy issued by Republic-Vanguard Insurance Co. excludes claims involving contract procurement and fulfillment, the insurer said in a complaint filed Monday in the US District Court for the Eastern District of Virginia. The policy provides up to $2 million in coverage subject to a $250,000 retention.

In the underlying lawsuit, ...