Goods Lost to Chapter 11 Closing Sale, Resulting “Sue and Labor” Expenses, Covered Under Ocean and Inland Marine Policy, According to Second Circuit Court of Appeals
Last month, the United States Court of Appeals for the Second Circuit upheld the Southern District of New York’s award of over $2 million to policyholder, Fabrique Innovations, Inc., against its ocean cargo insurance carrier, Federal Insurance Company.
Federal issued an “all-risk” ocean cargo insurance policy to Fabrique for fabric and plush merchandise “temporarily in storage” at a warehouse owed by Hancock Fabrics. Fabrique’s goods were lost when Hancock liquidated its holdings—including Fabrique’s merchandise—as part…