Bankrupt Insurer Must Face Clawback Suit, Pa. Court Says

Law360, Philadelphia (August 28, 2013, 2:31 PM EDT) -- A Pennsylvania appeals court ruled Tuesday that an excavation company could skip the statutory claims process and sue First Sealord Surety Inc., which is in liquidation, to recoup $1 million in collateral on performance bonds the company says the insurer improperly diverted into operating accounts.

A three-judge Commonwealth Court panel found that a liquidator for First Sealord Surety Inc. could not dodge the lawsuit by arguing that Tenco Excavating Inc. had to rely on the administrative claims process outlined in Pennsylvania's Insurance Department Act of 1921...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.