COURT DISMISSES INARTFULLY PLED CONTRACT CLAIM AGAINST MANAGING GENERAL AGENT
An Alabama federal judge dismissed a contract claim brought by the Alabama Municipal Insurance Corporation (“AMIC”) against Alliant Insurance Services, AMIC’s alleged managing general agent. AMIC alleged that Alliant breached a contract between the parties requiring Alliant to place and service certain reinsurance policies covering AMIC, by failing to serve timely notices to reinsurers, who then denied claims based on late notice defenses. From the allegations of the complaint, it appears the claims were ultimately paid by the reinsurers, but AMIC brought suit against Alliant seeking recompense for lost interest on the delayed payments. The Court found the allegations vague, and not adequately supportive of a contract action against Alliant under the new Ashcroft v. Iqbal pleading standard. The court dismissed the one-count complaint, allowing AMIC leave to amend. AMIC filed an Amended Complaint on March 2, 2010. Alabama Municipal Ins. Corp. v. Alliant Ins. Serv’s, No. 2:09-cv-928 (USDC M.D. Ala. March 1, 2010).
This post written by John Pitblado.
