Regions Bank Asks Federal Court to Dismiss Conspiracy Claim in Trust Account Dispute

COLUMBIA, S.C. — Regions Bank — Corporate Trust has asked a South Carolina federal judge to dismiss a conspiracy claim asserted against it in a dispute over whether a reinsurer was authorized to withdraw $200,000 from a trust account managed by Regions.

In a Jan. 21 motion filed in the U.S. District Court for the District of South Carolina, Regions maintains that the conspiracy to commit conversion claim fails as a matter of law under New York, Virginia and South Carolina law.

Greenlight Reinsurance Co. issued two one-year quota share reinsurance agreements to State National Insurance Co. and United Specialty …