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Wal-Mart sues insurers over Tracy Morgan crash settlement payments

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Wal-Mart sues insurers over Tracy Morgan crash settlement payments

Wal-Mart Stores Inc. is suing several excess insurers over their alleged recalcitrance in paying the settlement that was reached with comedian Tracy Morgan and others in connection with the 2014 accident, in which one of its trucks crashed in to the comedian's limousine, according to a report.

Wal-Mart announced May that it had settled a lawsuit with representatives of Mr. Morgan and two others who were seriously injured in the June 2014 accident, for an undisclosed amount.

Comedian James McNair was killed in the accident, while Mr. Morgan suffered serious brain injury and several broken bones, and spent weeks in the hospital and rehabilitation. The victims were returning from a performance in Delaware when the limousine in which they were travelling in on the New Jersey Turnpike was rear ended by the Wal-Mart truck.

According to the report by Courthouse News Service, Wal-Mart filed suit against several insurers in Benton County Court in Bentonville, Arkansas, last week, charging that the commercial excess liability insurers have failed to pay their portion of the settlement amount.

The Courthouse News Service report said litigation seeks compensatory and punitive damages from its insurers for breach of contract, negligent failure to settle claims within policy limits and bad faith.

The report names as defendants Liberty Insurance Underwriters Inc., and The Ohio Casualty Insurance Co., units of Boston-based Liberty Mutual Insurance Group; QBE Insurance Corp., a unit of Sydney, Australia-based QBE Insurance Group Ltd., St. Paul, Minnesota-based Travelers Cos. Inc. and its St. Paul Fire & Marine Insurance Co. unit; and XL Insurance America Inc., a unit of Dublin-based XL Group Inc. The insurers either had no comment or could not be reached.

A Wal-Mart spokesman could not be reached for comment.

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