First Circuit Hands Insurers Another Loss on Heating Oil Case

Fairfax Financial Holdings Ltd. insurance units are on the hook for a heating oil company’s legal defense costs in a class action alleging it sold faulty home heating fuel blended with high amounts of biodiesel.

For the second time this week, the US Court of Appeals for the First Circuit on Tuesday affirmed a lower court ruling finding insurers must defend Peterson’s Oil Service Inc. in the underlying state court case.

United States Fire Insurance Co. and North River Insurance Co. sued Peterson’s in 2023 seeking declaratory judgment. On summary judgment, the US District Court for the District of Massachusetts ...