Bad Faith Mold Case Dismissed From Federal Court Based on 'Nerve Center' Factors

CHICAGO - Citing application of the "nerve center" factors, the U.S. District Court for Illinois on Feb. 5 granted an insurer's motion to dismiss a bad faith mold case for lack of subject matter jurisdiction. Lambs Farm International, Inc., Plaintiff, v. Northern Insurance Company of New York, Defendant, No. 02 C 6055 (D. Ill., N. Dist. E. Div.).

The court granted the motion to dismiss, stating that the plaintiff was unable to meet its burden of proof showing that the insurer's principal place of business is in Illinois, and also stated that the plaintiff is free to refile the litigation …