Lender Slaps Euler Hermes With $6M Coverage Suit

Law360, New York (January 7, 2011, 5:02 PM EST) -- Continental Business Credit Inc. is looking to recoup at least $6 million from Euler Hermes American Credit Indemnity Co., alleging the insurer fraudulently denied coverage under a policy listing Continental as the beneficiary and brought the lender near collapse.

The complaint, filed Wednesday in the U.S. District Court for the Central District of California, claims that Euler Hermes wrongly denied coverage to Tremago Partners LLP, a company Continental funded, and now seeks to pay more than $2 million in a settlement with Tremago, bypassing the fact...
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