Baxter International, Inc. v. American Guarantee & Liability Insurance

This case arises out of an insurance coverage dispute between Baxter International, Inc. (Baxter), and American Guarantee & Liability Insurance Company (American). The dispute concerns whether payments American made to indemnify Baxter for damaged inventory can be considered in calculating American’s liability for loss due to business interruption. The trial court held the payments could not be considered and granted summary judgment on that issue to Baxter. We affirm in part and reverse in part.

Baxter is a global manufacturer of medical products. In September 1998, Baxter’s Puerto Rican…