Insurer Liable For SunTrust Loan Coverage: Judge

Law360, New York (May 13, 2011, 7:13 PM EDT) -- A Virginia federal judge ruled Friday that a United Guaranty Corp. unit owes SunTrust Mortgage Inc. coverage for certain defaulted loans but left the amount of damages resulting from the insurer's denial of that coverage to be determined at trial.

In a one-page order, Judge Robert E. Payne granted SunTrust's motion for summary judgment on its claim that United Guaranty Residential Insurance Co. of North Carolina is liable for damages resulting from its refusal to pay claims on defaulted IOF Combo 100 loans. The judge added...
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