A California judge recently chose not to dismiss a unique case involving liability insurance for a pressure cooker company that has recently been caught up in legal trouble after one of its products malfunctioned, causing serious injury to a Colorado minor. Arovast Corp, which manufactures and sells pressure cookers, held a policy with Great American E&S Insurance Co., but was denied coverage after being sued in Colorado. They have now taken their insurance provider to court in order to receive what they perceive is their deserved insurance payout.
The Original Incident
All of this stems from an unfortunate case in Colorado, where a minor sustained severe injuries as a result of a safety mechanism malfunction on the pressure cooker that was being used. As the contents of the cooker were heated, they should have been contained within the pot. As pressure built, however, a critical mechanism in the lid malfunctioned. This resulted in the plaintiff of the original case being struck with its searing hot contents. Justifiably, the injured party chose to sue Arovast Corp. for damages. Arovast subsequently turned to Great American for coverage, but was ultimately denied.
Grounds for Denial of Coverages
Arovast believed that the commercial general liability portion of their policy with Great American would cover their losses in the Colorado suit. Great American, however, denied the coverage on grounds of an exclusion that bars coverage for claims stemming from violations of unfair competition laws. They cited that section B of the manufacturer’s policy contained all the exclusion they needed to deny Arovast its payment. However, Arovast fired back with the fact that defense of a product liability case alleging bodily injury and property damage actually fell under the “Coverage A” section of their policy. Great American then moved to dismiss the case in a California court, but was denied last week.
Tae J. Im, Arovast’s legal representative in this case, had the following to say about the latest development: “As we stated in our opposition to Great American E&S’s motion to dismiss, we do not believe that it would make sense for insurance coverage to evaporate for a product liability claim just because the claimant also alleged unfair trade practices in the marketing of the allegedly defective product.” Only time will tell what happens, as this case prepares to go to trial.
Contact Gokal Law
Are insurance providers refusing your claim? You may be entitled to a case. Contact Alison Gokal of Gokal Law Group, Inc. Our team will diligently investigate your claims, interview witnesses, and give you the support you need to win your case. The sooner you contact us, the more effective we are at getting you the justice you deserve.
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