STORY FROM: Reinsurance & Arbitration
Claims to Proceed Against U.S. Bank in Lawsuit Alleging Mishandling of Reinsurance Trust Assets
October 25, 2017
COLUMBIA, S.C. — A South Carolina federal judge has refused to dismiss a lawsuit accusing U.S. Bank Trust N.A. of breaching its duties as trustee of a reinsurance trust account, finding the plaintiff adequately pled claims of breach of contract, breach of fiduciary duty, negligence and misrepresentation.
In a Sept. 28 order, Judge J. Michelle Childs of the U.S. District Court for the District of South Carolina said Accident Insurance Co. (AIC) sufficiently alleged that in breaching the trust agreement, U.S. Bank substantially depleted the trust’s assets, thereby exposing AIC to liability in a fronted insurance program.
In April 2013, ...
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