Federal Judge Dismisses Guarantors' Counterclaims Against Everest

TRENTON, N.J. - A New Jersey federal judge has dismissed counterclaims of fraud and misrepresentation brought by the guarantors of a reinsurance contract against Everest National Insurance Co., ruling that they are time-barred under Colorado law. Everest National Insurance Co. v. Sutton, No. 07-722 (D. N.J.).

On Oct. 16, Judge Joel A. Pisano of the U.S. District Court for the District of New Jersey also dismissed three of the guarantors' affirmative defenses, ruling that the court had already resolved the issues underlying the defenses in a previous order.

Centrix Financial, a Colorado company, underwrote and serviced sub-prime automobile loans. The …