Seneca Sues Everest Re for $2.5 Million in Coverage for Employment Verdict

NEW YORK - Seneca Insurance Co. has sued its reinsurer in federal court, seeking more than $2.5 million in coverage for an underlying employee retaliation verdict and related attorney fees. Seneca Insurance Company Inc. v. Everest Reinsurance Co., No. 11-7846 (S.D. N.Y.).

The Nov. 3 complaint, filed in the U.S. District Court for the Southern District of New York, accuses Everest Reinsurance Co. of breaching a reinsurance contract by refusing to pay Seneca's billings, which consisted of $1.9 million in indemnity and 562,910 in attorney fees.

According to the complaint, Everest Re issued a facultative certificate to Seneca, effective Nov. …