NEW YORK CRC Scrap Metal
Recycling LLC has taken to the U.S. Court of Appeals a lawsuit
against its insurers over an indemnity claim arising from a
scrap metals theft lawsuit brought against the company.
The Duncan, S.C.-based recycler
first filed a complaint against Hartford Casualty Insurance
Co., Hartford Fire Insurance Co. and Watson Insurance Agency
Inc. in January 2012 after Hartford denied coverage under a
policy purchased by CRC through Watson Insurance in July 2009,
according to court documents.
CRC lodged the indemnity and
defense claim after Greenville, S.C.-based Action Concrete
Contractors Inc. filed a lawsuit against the recycler in
November 2010 alleging "that it incurred property damages
including, but not limited to, the wrongful sale of aluminum
forms belonging to Action Concrete Contractors and the
damage/destruction of some of the aluminum forms owned by
Action Concrete Contractors by CRC."
Hartford denied coverage in
December 2010 on the basis that "there was no property
damage caused by an occurrence as those terms
are defined in the policy" and that the "exclusions in
CRCs policy for expected or intended injury,
damage to your product and damages to property that
was in CRCs care, custody or control
CRC subsequently filed a lawsuit
against Hartford and Watson Insurance in U.S. District Court in
South Carolina, alleging breach of contract and negligent
misrepresentation for Hartfords refusal to indemnify and
defend CRC in the Action Concrete case.
However, federal judge Henry
Herlong Jr. ruled in favor of the defendants in October
Documents filed in the U.S.
Court of Appeals this week indicate that the case has been
reopened on appeal.
Representatives for CRC,
Hartford and Watson Insurance couldnt be reached for