WHO SHOULD I SUE?: COVERAGE CLAIM AGAINST AIG HOLDING COMPANY DISMISSED
Insurers often operate multiple lines of business such that they issue polices through a number of different limited liability entities. As a result, insureds frequently must ask "who should I sue for coverage?"
USDC Judge Richard Jones addressed this issue in Torvik v. Insurance Company of Pennsylvania (January 10, 2010) (.pdf), a case in which the plaintiff insured had sued both the party issuing the automobile policy underlying the coverage claim and AIG, the parent holding company. AIG moved for summary judgment based upon declarations from its in house and defense counsel indicating that AIG had played no role in the handling of the plaintiff insured's claim. After affording the insured additional time to present contrary evidence, Judge Jones dismissed AIG, rejecting the insured's arguments that there was a genuine issue of material fact merely because an AIG claims representative had reportedly attended a prior mediation on behalf of the defendants.
