Insurer Seeks Summary Judgment in Dispute Involving Stock Purchase Agreement

BOSTON — SPARTA Insurance Co. has moved for summary judgment in its $75.7 million lawsuit accusing Pennsylvania Insurance Co. (PIC) of breaching a stock purchase agreement by failing to pay or administer claims made under policies issued by PIC’s former subsidiary, which is now owned by SPARTA.

In a Jan. 6 motion, SPARTA asked Chief Judge F. Dennis Saylor of the U.S. District Court for the District of Massachusetts to enforce a 2005 transfer and assumption agreement between PIC and American Employers Insurance Co. (AEIC) under which PIC assumed AEIC’s liabilities, and a stock purchase agreement under which PIC guaranteed …