BUSMAKERS NEWS * USA: Star Trans´s
* Washington - Goshen-based bus maker trying to recoup losses from faulty bus suit
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King County,WASH,USA -The Elkhart Truth, by Jeff Parrott -June 12, 2014: -- A Goshen-based bus maker is suing its former insurance carrier in an effort to recoup at least $5 million it paid out in a lawsuit alleging its buses were defective... King County, Wash., in 2012 sued the Star Trans Bus Division of Supreme Corp., alleging 35 buses the company supplied its Seattle area transit system were poorly designed and manufactured, and had numerous defects that didn’t conform to contract specifications, making the buses unsafe for drivers and passengers. Because of the alleged defects, the buses were out of service for about 70 percent of the 20 months the transit system tried to use them, the county argued in court documents. The county claimed damages of nearly $10.6 million... In June 2013, the company and county reached an out-of-court settlement in which Supreme agreed to take back the buses and pay the county about $4.7 million, about $500,000 of which it recovered from subcontractors... Supreme had to borrow against its $35 million credit line to pay the settlement because its insurance carrier, Overland Park, Kan.-based First Specialty Insurance Corp., refused coverage. First Specialty asserted the policy Supreme had taken out only covered bodily injury or property damage the buses might have caused, or personal and advertising injury, none of which pertained to the King County case...
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