Chartis Sued Over $25M In Airline Bankruptcy Losses

Law360, New York (October 2, 2012, 5:22 PM EDT) -- Merrick Bank Corp. sued Chartis Specialty Insurance Co. in New York federal court Friday, claiming the insurer owes up to $25 million under an insurance policy for losses it sustained when Myrtle Beach Direct Air went bankrupt in March.

Direct Air's bankruptcy resulted in the cancellation of thousands of prepaid customer charter reservations that Merrick was bound to reimburse but could not recoup from the insolvent airline, leading to massive losses that are at least partially covered by a $25 million uncollectable chargeback insurance policy Merrick...
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