West Virginia City Sues Liberty Mutual for $20M Over Claim Denial

A West Virginia city has filed a federal lawsuit seeking a $20 million insurance claim to cover damages at its hydroelectric plant.

The Intelligencer reports that the lawsuit was filed this month in U.S. District Court in Wheeling.

The city of New Martinsville’s lawsuit claims Liberty Mutual Insurance Company wouldn’t cover losses at the plant located at the Hannibal Locks and Dam.

The lawsuit says one of the plant’s units was not operational for two and a half years, costing the city money from electricity it could have been producing.

It says bolts and nuts connecting a rubber hub to the turbine shaft were broken or disengaged, among other damages.

The lawsuit says Liberty denied the claim by concluding that the loss fell within an exclusion of coverage.