Association Members May Bring Fiduciary Duty Claims Against Board

JACKSON, Miss. - Members of a windstorm coverage association have standing to bring breach of fiduciary claims against the association's board because each member was injured by the board's alleged failure to obtain adequate reinsurance, a Mississippi federal judge has ruled. Association Casualty Insurance Co. v. Allstate Insurance Co., No. 09-24 (S.D. Miss.).

In a Feb. 18 opinion, Judge Keith Starrett of the U.S. District Court for the Southern District of Mississippi denied a motion for summary judgment brought by Allstate Insurance Co., Mississippi Farm Bureau Insurance, Nationwide Insurance Co., State Farm Insurance Co., and The St. Paul Travelers Companies.