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CRC takes lawsuit to US Appeals Court

Keywords: Tags  CRC Scrap Metal Recycling, Hartford Insurance, Watson Insurance, Action Concrete Contractors, lawsuit, indemnity insurance, Court of Appeals, Daniel Fitzgerald

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 CRC’s policy for ‘expected or intended injury,’ ‘damage to your product’ and damages to property that was in CRC’s ‘care, custody or control’ precluded coverage."

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 Hartford’s 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 2012.

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 couldn’t be reached for comment Tuesday.

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