Spears sues Liberty Mutual over CPVC claims
A pipe manufacturer filed federal court papers accusing Liberty Mutual Fire Insurance Company of abandoning coverage obligations after construction defects emerged at two buildings. Spears Manufacturing Company says the carrier ignored claims tied to failed plumbing systems at Louisiana and Colorado properties despite valid policies covering the damage periods. The company notified the insurer about apartment complex leaks at Louisiana State University in October 2021, but waited over a year for any response about legal protection.
Liberty Mutual held two policies worth 1 million dollars per incident and 2 million dollars total with separate defense cost provisions. The California manufacturer paid settlements without carrier participation after reporting problems at a Denver mixed-use tower in December 2022. Spears wants reimbursement for all legal expenses and settlement payments, plus additional compensation for what it calls bad faith conduct under state contract law.
