Lawsuit In opposition to Lloyd & # 39; s for Late Authorized Funds Could Proceed – Enterprise Insurance
A federal district court on Wednesday declined to dismiss charges of breach of contract brought by a credit bureau against Lloyd’s Underwriter and CFC Underwriting Ltd.
Microbilt Corp. based in Princeton, New Jersey, received a management liability policy from Lloyd & # 39; s and CFC Underwriting in 2017 that included the payment of legal fees, according to the judgment of the US District Court in Trenton, New Jersey, in Microbilt Corp. v Certain underwriters at Lloyd & # 39; s, London and CFC Underwriting Ltd.
The lawsuit alleges that it took the defendants 16 months to pay their 2018 fees in full, which resulted in their attorney refusing to represent them and additional costs related to finding a new lawyer caused. The payment of the fees for 2019 is also said to have taken more than eight months. The lawsuit did not reveal how high the fees were.
The judge said in her ruling that she would not dismiss the case, even though the policy does not provide an express deadline for reimbursement.
"Put simply, those allegations are enough to make at least one breach of contract claim, regardless of whether the defendants reimbursed plaintiff for legal costs within a reasonable period of time or immediately after the claims and attorneys' bills were announced, the judgment said."
"In addition, the mere fact that the defendants fully reimbursed the plaintiff for the costs of the litigation does not expire the plaintiff's claim, since the plaintiffs are asserting claims for damages from the delay in payment. The court interprets the defendant's alleged breach of the policy as a result of their late payment, not their refusal to pay. "
Microbilt attorney Robert D. Chesler, a shareholder in Anderson Kill P.C. in Newark, New Jersey, said, "This type of insurance company delay is very common and can cause real harm."
The defendant's lawyer in the case did not respond to a request for comment.