Oil Company’s Claims Against Liberty Mutual Kept Alive by Court

Liberty Mutual Insurance Co. must face part of a lawsuit over the alleged mishandling of an oil company’s insurance claim for losses caused by a shipment that failed to meet specifications and was rejected.

The US District Court for the Southern District of New York denied motions for summary judgment and judgment on the pleadings for breach of contract and breach of the duty of good faith and fair dealing.

Although an exclusion for “latent defect” likely barred coverage, Grey Rock Gathering and Marketing LLC “adequately alleged that Liberty Mutual mishandled the claim independently of the breach itself,” Judge J. ...