LORDA Obtains Dismissal of an Insured’s Amended Complaint in Protracted D&O Bad Faith Litigation
January 15, 2014
On behalf of Zurich American Insurance Co., Bob Allen convinced Dallas Federal Judge Sidney Fitzwater to dismiss a D&O bad faith lawsuit. This is the second dismissal scored by LORDA in this suit.
Here, the court threw out the insured’s action for Declaratory Judgment on the duties to defend and indemnify on the basis that they were “not ripe for review” and that “ACBG has not met its burden of establishing an actual case or controversy.” In dismissing ACBG’s statutory bad faith claims, the court held that “ACBG fail[ed]to state a plausible claim that Zurich has failed to affirm or deny coverage within a reasonable time” and that “ACBG fail[ed] to plausibly allege that it has sustained actual damages.”