News Brief

Meer, Thurston, Tranen and Tomberg Argue ADR Provision, Granted Motion to Dismiss

September 22, 2021

Partners Jonathan Meer (New York, NY), James Thurston (Chicago, IL), Daniel Tranen (Edwardsville, IL | St. Louis, MO) and Erik Tomberg (Chicago, IL | Raleigh, NC) were granted a motion to dismiss on behalf of the firm’s insurance company client, in connection with an insurance coverage action that was pending in the U.S. District Court, Southern District of New York. The insured and two other individuals filed a declaratory judgment action seeking coverage from the firm’s client in connection with an underlying case. When coverage was denied, the insured filed a lawsuit instead of following the policy’s alternative dispute resolution (ADR) provision that required the parties to mediate any dispute. The team’s motion argued that since the insured failed to satisfy this condition, the lawsuit should be dismissed. The court not only agreed with that, but also specifically referenced the team’s case law support for why a 90-day cooling-off period is readily enforced. It further said that there is no basis to reward the plaintiffs in this case for filing their litigation early; so the motion was granted and the case is now closed.

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