HCC International Insurance Co. The PLC must pay the bulk of a $ 12.5 million limit for a key insurance policy taken out on Jordan Feldstein, the head of the pop band Maroon 5, who died of a blood clot in 2017, a federal court ruled last week.
The policy, although imperfectly designed, was intended to cover income related to Mr. Feldstein at the time of his death, wrote Judge Paul A. Engelmayer of the U.S. District Court for the Southern District of New York. in an opinion on 4 March. All proceeds recovered after the talent manager's death by Roc Nation LLC, the company that was in the process of buying him out, should not be deducted from the claim, the decision says.
The insurance was renewed in 2017 but shortly after the renewal Mr. Feldstein died. Following a lengthy investigation, HCC, a London-based entity of Tokyo Marine Holdings Inc., denied the claim for a number of reasons, including a provision in the policy that it allowed the insurer to reclaim all revenue Roc Nation received from CAM after Mr Feldstein's death, according to court documents in Roc Nation LLC v HCC International Insurance Co. PLC .
The Court disagreed, arguing that although the policy "is far from a draft model", the definition of "directly expected net loss" is not unequivocally the meaning given to the phrase by the HCC. Taken within the framework of the entire agreement, the phrase is in line with Roc Nation's claim that only revenue from CAM before Feldstein's death would be deducted from the policy limit, the court ruled.
"It is clear that the parties' reasonable expectations at the time of the procurement were that HCC would largely cover Roc Nation's investment in CAM minus amounts which Roc Nation had recovered or which had already been generated and which it was immediately entitled to recover from. CAM at the time of Feldstein's death, ”the court ruled.
HCC declined to comment on the decision. Catalog