A dispute between Global Beauty Care (GBC) and insurance firm Travellers, over an alleged breach of contract on coverage for a batch of stolen goods, has been sent to mediation.
The US skin care retailer originally sued Travellers in February 2021 over allegations that it failed to cover the business for a theft that occurred at a loading dock.
GBC said Travellers used an overly technical explanation of a marine cargo policy to deny coverage for the goods, Law360 reported in July 2022.
However, in September that same year Travellers raised the claim that GBC had not stored the cargo correctly in their warehouse.
The United States District Court for the District of New Jersey has ordered both parties to attend mediation sessions with attorney Cheryl Goski, in order to resolve the issue.
“To the extent this matter is not resolved through mediation, the motions shall be deemed reinstated," Judge Claire Cecchi said in a statement.
“This matter having come before the court on a telephone conference with the parties on 3 April 2023, and it [appears] that mediation would conserve the resources and be in the best interests of the Court and the parties,” a statement from the court read.