Federal Magistrate Judge Dismisses Insurer’s Fraud Indemnity Counterclaims

(June 8, 2016, 10:18 AM EDT) -- PITTSBURGH — A Pennsylvania federal magistrate judge on June 3 dismissed fraud and indemnification counterclaims filed by an insurer in a lawsuit over a contract payment dispute between a town’s wastewater authority and the insurer (Liberty Mutual Insurance Co. v. The Municipal Authority of the City of McKeesport, No. 15-1319, W.D. Pa.).

(Opinion and order available. Document #69-160701-004Z.)

The Municipal Authority of the City of McKeesport entered into various wastewater treatment construction contracts with Galway Bay Corp. The contracts required Galway to secure performance and payment...
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