US Fire Loses Bid To Kill 1031 Receiver's Fraud Claim

Law360, New York (July 15, 2011, 4:45 PM EDT) -- A California federal judge on Thursday refused to dismiss a 1031 exchange company receiver's fraud counterclaim against U.S. Fire Insurance Co. in a coverage fight tied to the exchange company's alleged real estate embezzlement scheme.

In refusing U.S. Fire's bid to dismiss the counterclaim, U.S. District Judge James Ware rejected the insurer's argument that the exchange company, Vesta Strategies LLC, did not discover the alleged losses during the discovery period for its $2 million commercial crime policies.

U.S. Fire launched the suit against Vesta Strategies in...
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Case Information

Case Title

United States Fire Insurance Company v. Vesta Strategies, LLC et al


Case Number

5:09-cv-02388

Court

California Northern

Nature of Suit

Insurance

Judge

James Ware

Date Filed

May 29, 2009

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