Liberty Mutual hoped to remove a federal judge from a coverage dispute case because of his significant claims history.

The company's stance was an apparent attempt to gain leverage in settlement negotiations and convince the plaintiff to accept a nominal settlement.

A U.S. district court judge has ruled that pandemic-related closures served as a single loss event instead of several.

'The record shows the trial court was misled into error here and we are confident justice will ultimately be achieved,' plaintiffs attorney Gerald Clark said.

As this type of litigation continues to evolve, insurance companies are keeping close tabs on the situation.

The plaintiffs intend to file a bad-faith suit in the case after their insurance company repeatedly refused to tender its policy until shortly before trial.

The settlement consisted of $12 million from an AXA XL excess coverage policy and $3 million total from three other policies.

A court can award actual damages of at least $1,000 for each violation, punitive damages for reckless or willful disregard of the law, and attorney fees and litigation costs.