A federal district court on Wednesday refused to dismiss contract breach fees filed by a credit bureau against Lloyd & # 39 ;s underwriters and CFC Underwriting Ltd.
Princeton, New Jersey-based Microbilt Corp.
received a management liability policy from Lloyd & # 39 ;s and CFC Underwriting 2017 that provided for the payment of legal fees, according to the judgment of the U.S. District Court in Trenton, New Jersey, in Microbilt Corp. v. Some insurers at Lloyd & # 39 ;s, London and CFC Underwriting Ltd.
The lawsuit alleges that the defendants took 16 months to pay their 2018 fees, which led to its agents refusing to continue to represent it and created additional costs associated with finding new advice. It is also alleged that it took more than eight months to pay its fees for 201
The judge said in her judgment that she would not dismiss the case even if the policy did not include an explicit time limit for reimbursement.
, these allegations are sufficient to at least uphold a claim for breach of contract, "the judgment stated.
late payment. The court interprets the defendant's alleged breach of the policy as a result of their late payment, not their refusal to pay. ”
Microbilt lawyer Robert D. Chesler, shareholder in Anderson Kill P.C. in Newark, New Jersey, said: "This type of delay from insurance companies is very common and it can cause real harm."
The defendant's attorney in the case did not respond to a request for comment.