MI Windows & Doors, LLC v. Liberty Mutual Fire Insurance

ORDER

STEVEN D. MERRYDAY, District Judge.

The plaintiffs are window and sliding glass door manufacturers that purchased commercial liability insurance from the defendant. In 2002, non-parties sued the plaintiffs in Alabama for defective products that caused water damage. The defendant defended the plaintiffs in the underlying actions, which eventually settled. After the defendant refused to indemnify the plaintiffs, the plaintiffs sued for breach of contract. “It was [the defendant’s bad faith] handling of these claims — including coverage litigation that ensued arising out of [the plaintiffs’]…