Car Retailer Appeals Ruling In Dispute Over Claims It Failed To Disclose Damage

(April 13, 2016, 10:17 AM EDT) -- CINCINNATI — A used car retailer recently asked the Sixth Circuit U.S. Court of Appeals to reverse a lower federal court’s ruling that a commercial insurer has no duty to defend it against an underlying lawsuit alleging that it failed to disclose a vehicle’s pre-existing damage to a customer (Preferred Automotive Sales Inc. v. Motorists Mutual Insurance Co., No. 15-6183, 6th Cir.).

Failure To Disclose

In January 2005, Preferred Automotive Sales Inc. sold a 1998 Mercedes-B SLK to Charles Allen.

Allen sued Preferred in the Jefferson...
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