TALG Obtains Dismissal of Claimant’s Suit for Coverage Based on Lack of Standing
February 13, 2025
On February 7, 2025, Dallas federal judge Jayne Boyle granted TALG client Hudson Specialty’s Rule 12(b)(1) motion to dismiss for lack of jurisdiction in connection with an action by a claimant of a Hudson Specialty insured to obtain insurance coverage for a $12.3 million arbitration award in favor of the claimant against the Hudson Specialty insured. Here, the effort in Texas state court to convert the arbitration award into a judgment was ongoing and not final because a request for attorneys fees was still pending that the claimant did not show was only incidental to executing on the judgment. Accordingly, the claimant lacked standing to bring the suit because the suit is barred by the Texas no-direct action rule requiring the dismissal of the case.