A federal district court in Kentucky has agreed to dismiss an insurance broker from directors and officer liability procedures between a Hartford Financial Services Inc. unit and the University of Louisville Foundation.
An agent working for Louisville, Kentucky-based RH Clarkson Insurance Group had worked on insurance, which included D&O coverage, provided by the Hartford Navigators Insurance Co. issued to the University of Louisville Foundation, following last week's decision by the U.S. District Court in Louisville, Kentucky, Navigators Insurance Co. v.University of Louisville Foundation, Inc.
Several of the foundation's officials are alleged to have managed the university's grants held by the foundation, and a state audit report released to the public in December 201
In April 2018, the foundation and the University of Louisville sued several of the foundation's officials in the State Court for their alleged mismanagement of the university's talent, according to the ruling.
Navigators filed a lawsuit against the foundation seeking the revocation of its policy or a legal declaration that it has no liability to the foundation related to the state trial.
The Foundation then filed third-party allegations against Clarkson. The court has previously dismissed the f anti-fraud scheme.
The rejection of the negligence claim states in the decision: "Even assuming that Clarkson has breached an obligation it placed on the Foundation, the facts set forth in the complaint do not sufficiently allege that the violation resulted in Navigator's trial … Any such violation therefore did not cause the foundation's claim for damages, "said the decision when it closed the brokerage as a third party defendant.
Lawyers in the case had no comment or did not respond to the request for comment.