St. Paul Tries To Dodge $27M BNC Claim

Law360, New York (October 22, 2010, 2:14 PM EDT) -- St. Paul Mercury Insurance Co. has filed suit against BNC Corp. Inc. in an effort to avoid having to pay a $27 million coverage claim from the bank holding company related to an underlying fraud dispute with a servicing contractor.

The insurer sued BNC in the U.S. District Court for the District of Arizona on Wednesday, seeking a declaration that it owed no duty to pay out on a $5 million excess insurance policy.

At the very least, St. Paul argues it owes nothing until BNC...
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