Lawsuit against Lloyd’s on delayed legal payments can proceed

Business Insurance

A federal district court refused Wednesday to dismiss contract breach charges filed by a credit reporting agency against Lloyd’s underwriters and CFC Underwriting Ltd. because of their alleged long delay in paying its attorneys fees under its management liability coverage.

Princeton, New Jersey-based Microbilt Corp. obtained a management liability policy from Lloyd’s and CFC Underwriting in 2017 that provided for the payment of legal fees, according to the ruling by the U.S. District Court in Trenton, New Jersey, in Microbilt Corp. v. Certain Underwriters at Lloyd’s, London and CFC Underwriting Ltd.

The lawsuit charges that the defendants took 16 months to fully pay its 2018 fees, which led to its counsel refusing to continue to represent it and created additional expenses associated with finding new counsel. It also allegedly took more than eight months to pay its 2019 fees. The lawsuit did not reveal how much in fees was involved.

The judge said in her ruling she would not dismiss the case even though the policy did not include an express timing requirement for reimbursement.


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