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Federal Circuit: Insurer’s Attempt to Stand in the Shoes of Government Contractor Fails - Insurance Coverage

Insurance Coverage

Posted on: Mar 29, 2018

The Tucker Act cannot be read to waive sovereign immunity for a general liability insurer that brings suit as an equitable subrogee of a prime contractor, a panel of the U.S. Court of Appeals for the Federal Circuit instructed. In so ruling, the panel affirmed the Federal Claims Court’s dismissal for lack of subject-matter jurisdiction an attempt by the commercial general liability insurer for the general contractor on a Post Office asbestos-removal project to recoup the amounts that the insurance company had paid to settle an underlying tort suit against its insured by a postal employee who alleged that he had contracted mesothelioma after having been exposed to asbestos during the project.

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