Insurer Must Defend Compaq in Class Action

     ST. LOUIS (CN) – St. Paul Fire and Marine Insurance has a duty to defend Compaq computers in a class action accusing the company of selling computers with defective floppy diskette controllers, the 8th Circuit ruled.

     Hal LaPray, a Texas computer retailer, claimed Compaq not only sold computers containing the defective controllers, but also issued software to “fix” the problem that didn’t work.
     The court concluded that the claim falls under St. Paul’s policy to defend damage lawsuits based on alleged errors.

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