Liberty Mutual Insurance v. Greenwich Insurance

BOUDIN, Chief Judge.

This commercial dispute, more complicated than difficult, concerns a claim made on a surety bond issued by one insurer to another. The district court granted recovery on the bond in favor of the claimant, Liberty Mutual Insurance Company (“Liberty”), and against the issuer of the bond, Greenwich Insurance Company (“Greenwich”). Greenwich has appealed, and we now affirm.

The scene is easily set. In December 1999, American Tissue, Inc. (“American Tissue”), a manufacturer now bankrupt, obtained from Liberty two insurance policies to cover workers’ compensation that American…