port authority of new york sues liberty mutual

Nature of the Case1. At all times relevant herein, Plaintiffs were additional insureds under Commercial General Liability policies (the “Policy” or “Policies”) issued by Defendant Liberty Surplus Insurance Corporation (“Liberty”) to Modern Facilities Services, Inc. (“Modern”).2. Under the terms of its Policies, Liberty was required to defend and indemnify Plaintiffs against bodily injury claims as required in contracts between Modern and Plaintiffs to provide cleaning and maintenance services at PATH stations and at Newark Liberty International Airport.3. Liberty has engaged in a bad faith course of conduct over several years of unreasonable failing to properly defend and indemnify Plaintiffs in direct violation of its contractual obligations under the Policies and its fiduciary obligations to Plaintiffs.4. In one case, Liberty accepted the tender of a claim by one Soma Mandal (“Mandal”) against Port authority without any reservations of rights. Liberty then controlled the Port Authority’s defense of the Mandal claim, and unreasonable and in bad faith denied liability during the trial of the Mandal claim, thereby causing the Port Authority to incur a $7.7 million judgment in favor of Mandal as well as substantial legal and expert fees defending the Mandal claim.