N.Y. Appellate Court Allows Applied Underwriters Lawsuit to Proceed

NEW YORK — A lawsuit accusing Applied Underwriters of fraudulently marketing its EquityComp workers’ compensation program and accompanying reinsurance participation agreement may proceed because the RPA’s forum selection provision, which calls for litigation in Nebraska, is unenforceable.

In an April 17 opinion, the New York Supreme Court, Appellate Division, further ruled that the plaintiff adequately alleged its claim for rescission in connection with the RPA.

From April 2014 to October 2016, Air-Sea Packing Group Inc. participated in an EquityComp workers’ compensation program marketed and sold by Berkshire Hathaway Inc. subsidiaries Applied Underwriters and Applied Underwriters Captive Risk Assurance Company Inc. …