Reinsurer Urges Ariz. Federal Judge to Toss Hotel’s Claims in Flood Coverage Case

PHOENIX — Hartford Steam Boiler Inspection and Insurance Co. (HSB) is urging an Arizona federal judge to dismiss a hotel’s first amended complaint in its action demanding coverage for extensive flood damage caused by an air conditioning system, arguing it is not contractually liable for the losses.

In a March 14 reply filed in the U.S. District Court for the District of Arizona, HSB argues Midtown Hotel LLC lacks privity of contract to support a claim of breach of contract and breach of the implied covenant of good faith and fair dealing against HSB because there is no contractual relationship …