Golden Isles Seeks Dismissal of $11.3 Million Action, Says Canal’s Claims Lack Merit

ATLANTA — Golden Isles Insurance Co. has moved to dismiss a $11.3 million reinsurance fraud action, asserting that the lawsuit is simply an attempt by plaintiff Canal Insurance Co. to avoid drawing down on a trust account established to cover Golden Isles’ liabilities.

In a Jan. 20 motion filed U.S. District Court for the Northern District of Georgia, Golden Isles argued that Canal has not stated plausible claims for breach of contract, fraudulent transfer, alter ego/veil piercing, attorneys’ fees, punitive damages, or an accounting. Moreover, Canal has failed to establish personal jurisdiction over certain defendants, Golden Isles asserted.

Golden …