Update: A federal district-court judge has denied a group of insurers’ motion to dismiss Coca-Cola’s claim for attorneys’ fees in a cross-border insurance coverage dispute.
In this coverage dispute, Coca-Cola claims that its insurers wrongfully refused to reimburse nearly $1 million in business interruption losses it suffered at two bottling plants in Nepal resulting from a blockade of the Nepal-India border.
On December 20, 2016, a New York federal district court granted a petition to compel arbitration, filed by Zurich Insurance Co.’s (“Zurich”), as a subrogee of Adidas Group (“Adidas”), against Crowley Latin America Services LLC (“Crowley”), a transportation and logistics company. The underlying dispute involves losses from a fire-damaged shipment of Adidas clothing. The Court allowed Zurich to compel arbitration based on its service contract with Adidas.
The owner of a fire-damaged warehouse in Florida is battling in the Fifth Circuit to revive a claim alleging that a broker and insurer negligently failed to procure adequate insurance for the warehouse—by arguing that the lower court should have applied a different state’s law to its summary judgment determination. The warehouse owner leased the warehouse to a Florida-based produce distributor, which in turn procured a $5 million insurance policy from Alterra American Insurance Co. A fire later caused $10 million worth of damage to the warehouse, toward which Alterra paid the $5 million policy limit.