Lender Fights For Coverage Of $98M Default Judgment

Law360, New York (May 15, 2009, 12:00 AM EDT) -- American Bank Holdings Inc. has fired back at a subsidiary of The Travelers Cos. Inc., claiming the insurer is responsible for covering a $98.5 million default judgment against the mortgage company in an underlying suit alleging consumer fraud.

ABH, also known as United Federal Mortgage, lodged counterclaims against Travelers unit St. Paul Mercury Insurance Co. in the U.S. District Court for the District of Maryland on Thursday, a month after the insurer filed a declaratory judgment suit seeking an order that it need not indemnify ABH...
To view the full article, register now.