A federal appeals board asks the Texas Supreme Court for its advice in disputes filed against Lloyd & # 39 ;s London insurer by a precious metals dealer who suffered a loss of more than $ 1 million after a thief forged checks and intercepted two gold coin shipments. .
Dallas-based Dillon Gage Inc. had a Lloyd's policy that excludes coverage for any losses incurred "after" handing over insured property to any third party against payment by fraudulent check, "according to Thursday's filing of the 5th U.S. Circuit Court of Appeals in New Orleans in Dillon Gage, Inc. in Dallas v. Certain Underwriters at Lloyd & # 39; s.
In January 2018, Dillon Gage received an order for $ 549,000 in gold coins which they thought came from an orthopedic surgeon in Alabama, when a criminal had actually placed the order. ] The thief placed a new order for $ 655,000 worth of coins the same day, the check was cleared and ten days later the thief also eavesdropped on the second package, leaving the company with no more than $ 1
Dillon Gage filed an insurance claim, but citing "consequence" of the exclusion, the insurers denied the claim, saying that only $ 12,500 was applied under an exclusion exemption.
Dillon Gage brought an action for breach of contract before the U.S. District Court in Dallas, which ruled in favor of the insurer.
On appeal, a panel of three judges appealed to the Texas Supreme Court to interpret state law. The Supreme Court of Texas has neither interpreted the phrase that follows from nor interpreted an analogous phrase in an analogous agreement. '
Lawyers in the case did not respond to a request for comment. .