Scottsdale Sued For Firm Choice In Suit Over Customs Bonds

Law360, New York (November 28, 2012, 3:03 PM EST) -- Insurer Kingsway America Agency Inc. on Tuesday accused Scottsdale Indemnity Co. of appointing a law firm that may have a conflict of interest in defending Kingsway in litigation over $2.7 million in losses from the issuance of allegedly subpar customs bonds.

Kingsway said that while Scottsdale has agreed to defend it in the litigation, its choice of representation has an existing and ongoing business relationship with Scottsdale, enabling it to bill and collect attorneys’ fees and costs to represent Scottsdale’s insureds in lawsuits — which Kingsdale...
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