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State of Minnesota's Liability Capped in Collapse of Bridge

Contractors and their insurance carriers are facing hundreds of millions of dollars in legal claims as a result of the collapse of the Interstate 35W...
August 15, 2007

Contractors and their insurance carriers are facing hundreds of millions of dollars in legal claims as a result of the collapse of the Interstate 35W bridge in Minneapolis.  Total legal claims could top $1 billion, but the state's liability is limited to $1 million by state law, no matter how many people were injured.  A larger payout would be possible if the state Department of Transportation had an insurance policy, which it does not. 

Mark Kulda, a spokesman for the Insurance Federation of Minnesota, said that if the triggering event was faulty design or faulty construction, many of the claims would probably be time-barred.  The state's six-year statute of limitations could prevent the bridge's designers or builders from being sued successfully.  Insurers should expect to receive property and auto damage, workers compensation and business interruption claims.

Insurers Could Face Claims After Bridge Collapse (Seattle Times 8/5/07)

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