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Third-Party Spoliation Claims Expanded - Insurance Coverage

Insurance Coverage


Posted on: Apr 25, 2024

Third-party claims for spoliation of evidence are permitted where the claimant’s need for evidence is apparent and the party spoiling the evidence was aware of the likelihood of litigation. In Safeco v. Blue Sky, Michaelis, a contractor, was aware of its duty to preserve evidence and did not preserve evidence of a house fire allegedly caused by a defective dehydrator. This alleged failure was enough to allow the insurer’s third-party claim for spoliation to survive a Motion to Dismiss.

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