Business insurance

Pennsylvania cosmetics company sued for $ 65 million by L’Oréal says its insurance company should have warned them


A legal battle over liquid foundation makeup resulted in a lawsuit against a Pennsylvania company for $ 65 million by L’Oréal. Now this company is going after its insurers.

The complicated story of the corporate intrigue comes from the voice of citizens, who reports that Process Technologies and Packaging LLC of Olyphant, Pa., was slapped with a whopping $ 65 million lawsuit against L’Oreal cosmetics.

L’Oréal, an international makeup heavyweight, sued PTP in July 2019, alleging that the foundation it produced for him from December 2018 to April 2019 did not meet the company’s specifications. L’Oréal was unable to sell the product and was also forced to recall the product, writes the Citizens Voice.

Now the Pennsylvania cosmetics company is in Lackawanna County court, where a judge has ruled that PTP can file its own lawsuit alleging that PTP’s insurance agents negligently failed to recommend coverage that would have protected the company from the $ 65 million lawsuit brought against it by L’Oréal Cosmetics, reports the Citizens Voice.

Process Technologies and Packaging LLC has filed a lawsuit against Assured Partners Northeast of Dunmore, its predecessor, Kincel & Company Insurance, Mid-Valley Insurance Agency of Peckville and several other defendants, alleging that the companies’ agents gave company officials flawed advice that left him without insurance to cover L’Oréal’s claims that it botched production of its Confidence in Foundation liquid cosmetic product, the newspaper writes.

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Following citizen voice details:

The PTP lawsuit alleges officials would have purchased the blanket had they known it existed. However, agents employed by Assured Partners and Kincel & Company did not notify them of this.

In addition to Assured Partners, the lawsuit names insurance brokers Jennifer Hlavaty, Kevin Kincel, Kenneth Kincel, Joseph Zwick and Dennis Corvo as defendants. She seeks damages for negligence against all defendants and for breach of contract against Assured Partners and Kincel & Company.

Lawyers for Assured Partners, Hlavaty, Zwick and the Kincels filed a motion to dismiss the case on the basis of a technical legal principle relating to contract law. The officers also argued, in part, that they could not be held individually liable since their employer is also a defendant.

However, Lackawanna County Judge Terrence Nealon dismissed the arguments, citing previous court rulings that individuals can be held personally responsible for their actions separately from their employer.

Alas, the makeup battle continues.