We represent the former parent of a bankrupt, former subsidiary, in connection with disputes with the former subsidiary's general liability insurance carrier regarding whether or not our client must assume responsibility for paying the $5 million self-insured retention regarding civil liability claims against the former subsidiary that had been discharged by as a result the former subsidiary's Chapter XI bankruptcy. In accordance with a separate settlement between the carrier and the subsidiary, the carrier assumed the defense of the underlying claims, agreeing in effect with the claimants that the bankruptcy of the insured subsidiary had not discharged the carrier's obligation to pay insured claims, even though 100% of the first $5 million of very claim was self-insured by the bankrupt company. The carrier then took the position that our client, also a named insured under the policies insuring the former subsidiary, had agreed in a separate Payment Agreement effectively to guarantee the obligations of the subsidiary to pay the SIR. When our client refused to reimburse the costs incurred by the carrier in defending the pre-bankruptcy claims against the former subsidiary, the carrier drew down a letter of credit place by our client to obtain reimbursement of the carrier's costs and then successfully moved to compel arbitration of the Payment Agreement dispute. The arbitration is pending.

Experience Center

Match our Experience to Your Needs

Experience Highlights

Intellectual property and litigation for an aerospace and automotive products manufacturer
Defended an aerospace and automotive products manufacturer in a complex intellectual property licensing dispute involving allegations of breach of more
In re NII Holdings
Represented creditors committee for NII Holdings Inc. (f.k.a. Nextel International) in connection with restructuring of more than $2 more
Represented WebMD in joint venture with Japan's Softbank Corp.
Served as lead counsel to WebMD in connection with its joint venture with Japan's Softbank Corp., a telecommunications and media corporation. more
Betz v. Weekley Homes
Successfully settled copyright litigation involving architectural works on behalf of David Weekley Homes. Frank Betz Assocs., Inc. v. more