1st Circ. Sides With Insurers V. Equipment Lessor

Law360, New York (August 27, 2009, 5:15 PM EDT) -- A federal appeals court has ruled that equipment leasing company Balboa Capital Corp. cannot cancel existing insurance agreements covering the equipment it leases without cause, reversing a district court's judgment.

Judge Juan R. Torruella of the U.S. Court of Appeals for the First Circuit ruled Wednesday on behalf of a three-judge panel that Balboa Capital's contracts with American Lease Insurance to insure the equipment, and with A.I. Credit Consumer Discount Co. to finance that insurance, do not allow it to terminate contracts for existing insurance policies...
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