News Brief

Price Collins Prevail in Voluntary Dismissal of Class Action

January 23, 2013

Price Collins (Partner-Dallas) succeeded in having a class action voluntarily dismissed that was filed against firm clients from the London market. The matter named approximately 120 defendants, including a number of insurers.  The action had been pending in the United States District Court for the Eastern District of Arkansas.

The case arose after a boat basin in Little Rock, AR was damaged by flood waters in April 2011 causing a loss in excess of $1 million. The insured filed a claim against Underwriters which denied the claim based on a flood exclusion in the policy.  In an effort to recoup their loss, the owners of the boat yard filed a class action lawsuit, with the class being all residents of Arkansas who held insurance policies with Underwriters for the previous five years.

Also originally named as defendants were all the entities involved in the placement of the risk and handling of the claim, as well as the London insurance broker involved in the placement.  Thereafter, over 20 wholesale brokers doing business in Arkansas were added as defendants.

We removed the matter to Federal Court and attacked the Arkansas statute which formed one of the alleged bases for the class status.  A detailed motion to dismiss was then filed which convinced the plaintiffs of the weakness of their arguments and their position.

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