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Main image for Exec’s Cut In $2M Bid-Padding Scheme Covered, Judge Says
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Exec’s Cut In $2M Bid-Padding Scheme Covered, Judge Says

Law360

12.3.2015

​A New Jersey federal judge handed a partial win to an industrial storage system company in a coverage dispute on Thursday, saying the company’s crime insurance policy covered the amount a crooked executive took from an alleged $1.9 million in padded bids but not the share a contractor received.

Ruling on competing motions for summary judgment, U.S. District Judge William J. Martini said Navigators Insurance Co. has to cover what Frazier Industrial Co. lost to an unnamed vice president who helped a contractor pad bids for installation of the company’s steel storage structures. However, the share that the contractor, Coast to Coast Installations Inc., received is not covered, the judge said.

Frazier Industrial is represented by Sherilyn Pastor of McCarter & English LLP.

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