Liberty Mutual Prevails in Indemnification Dispute With Atain

Liberty Mutual Insurance Co. prevailed Wednesday in a suit claiming Atain Specialty Insurance Co. is on the hook for a $1 million appeal bond issued by Liberty for a defendant insured by Atain.

Atain can’t rely on equitable estoppel to shirk payment because Atain hasn’t shown it reasonably relied on a misrepresentation by Liberty, the US Court of Appeals for the Fourth Circuit said. The doctrine offers a defense to payment where the the party seeking to avoid payment can show that it detrimentally relied on another party’s misrepresentation even after exercising due diligence.

“Atain had access to all ...