Greenwood, September 19, 2025
News Summary
Bay Island Sportswear, Inc. and Wildcat Retro Brands, LLC are embroiled in a legal battle concerning a theft claim of cargo valued at $200,000. The cargo, lost in transit from Los Angeles to Greenwood, is at the center of accusations of breach of contract and bad faith against Liberty Mutual Insurance, which denied the insurance claim. The incident highlights the growing concern over cargo theft, which has surged by 49% recently.
Greenwood, South Carolina – A significant legal dispute has emerged between Bay Island Sportswear, Inc. and Wildcat Retro Brands, LLC over a theft claim involving cargo valued at $200,000. The cargo was reportedly lost while in transit from Los Angeles, California, to Greenwood, South Carolina, under a contract with Priority-1, Inc. The two companies filed their complaint in the United States District Court for the District of South Carolina, Greenwood Division.
The companies involved primarily manufacture and sell t-shirts and are responsible for distributing their products. The shipment in question was picked up on April 12, 2024, by a tractor trailer designed with an integrated lifting platform, as stipulated in their agreement with Priority-1. The truck driver presented a bill of lading provided by Priority-1, which authorized the loading and transportation of the goods.
Shortly after, Priority-1 informed Bay Island that the goods were lost, and investigations revealed they were presumed stolen. Law enforcement was notified of the alleged theft, but unfortunately, the cargo was never recovered. Following this incident, Bay Island initiated an insurance claim with Liberty Mutual Insurance, which underwrote a policy covering losses that occurred during the transportation of goods.
However, on September 17, 2024, Liberty Mutual denied the insurance claim, citing a policy exclusion regarding scenarios in which the insured “voluntarily parted” with their goods. Bay Island contests this exclusion, arguing that it should not apply since they adhered to the transportation procedures and relied in good faith on Priority-1’s bill of lading.
Bay Island’s legal team has continuously submitted additional facts to Liberty Mutual to support their claim since January and July of 2025. Despite these efforts, the insurance company maintained its denial of the claim. Consequently, Bay Island alleges breach of contract, bad faith, and engagement in unreasonable claims practices by Liberty Mutual. Specific issues highlighted in the allegations include undue delays in payment and misleading explanations surrounding the claims process.
In their legal action, Bay Island seeks declaratory relief concerning the coverage under their policy along with actual damages, punitive damages, and the recovery of attorneys’ fees. The complaint also implicates Priority-1 for allegations of breach of contract, conversion, breach of trust, negligence, and unfair trade practices, asserting that the company failed to adequately safeguard the cargo during transport.
This case underscores the complexities often encountered in insurance claims, particularly with respect to policy language and the responsibilities of transportation intermediaries. Cargo theft incidents have notably surged, with reports indicating a 49% increase in such crimes during the first half of 2024. Strategic theft and double brokering are specific areas of rising concern within the sector.
The broader implications of this legal dispute suggest that businesses and policyholders need to reassess their insurance coverage comprehensively while implementing strategies to mitigate risks associated with cargo theft.
FAQ Section
What is the legal dispute about?
The legal dispute involves Bay Island Sportswear, Inc. and Wildcat Retro Brands, LLC over a missing cargo valued at $200,000 that vanished while being transported from Los Angeles, California, to Greenwood, South Carolina.
What transportation company was involved in the shipment?
The shipment was handled under a contract with Priority-1, Inc.
When did the cargo theft occur?
The cargo was picked up on April 12, 2024, and it was reported lost shortly thereafter.
What was Liberty Mutual’s response to the insurance claim?
On September 17, 2024, Liberty Mutual denied the claim, citing a policy exclusion for situations where the insured “voluntarily parted” with their goods.
What actions is Bay Island pursuing against Liberty Mutual?
Bay Island seeks declaratory relief regarding the coverage under their policy, actual and punitive damages, and attorneys’ fees.
Key Features of the Legal Dispute
| Feature | Description |
|---|---|
| Involved Parties | Bay Island Sportswear, Inc., Wildcat Retro Brands, LLC, Priority-1, Inc., Liberty Mutual Insurance |
| Claim Value | $200,000 |
| Date of Shipment | April 12, 2024 |
| Claim Denial Date | September 17, 2024 |
| Claim Issues | Breach of contract, bad faith, unreasonable claims practices |
| Rising Concern | 49% increase in cargo theft incidents in 2024 |
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Insurance Business: Liberty Mutual Denies $200K Cargo Loss Claim
- Hunton: Modern Piracy and Insurance Coverage for Cargo Theft
- Risk & Insurance: Global Shipping Losses Hit Record Low
- Wikipedia: Cargo Theft
- Forbes: Best Commercial Truck Insurance
- Google Search: Cargo Theft Insurance
Author: HERE Greenwood
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