A Delaware court has ruled that Verizon Communications Inc. can recover $ 24 million in defense costs related to a 2006 spin-off dispute. , North Carolina-based FairPoint Communications Inc., according to a Tuesday ruling by the Delaware Superior Court in Verizon Communications Inc. v. National Union Fire Insurance Co. in Pittsburgh, PA et al.
FairPoint Communications went bankrupt in 2009, emerged in 2011. The bankruptcy trustee sued Verizon in 2011 in connection with the deal, in a "fraudulent transfer" lawsuit, which was eventually settled for $ 95 million. A fraudulent transfer case is a litigation where it is accused that transfers are made with the intention of defrauding creditors. as well as Verizon, and the insurance's surplus insurance company must provide $ 24 million in defense costs. Central to the insurers' proposal to dismiss the dispute was whether it concerned securities claims, according to the decision, with insurers claiming that it did not. The trustee in bankruptcy was a "security holder" of FairPoint and the disputes were brought on behalf of FairPoint, the decision said. Movement to cover legal costs. , National Specialty Insurance Co., a Markel Corp. unit; US Specialty Insurance Co., a unit of Tokyo Marine HCC; Axis Insurance Co., a unit of Axis Capital Holdings Ltd.; and St. Paul Mercury Insurance Co.; , a unit of Travelers Insurance Group Holdings Inc.
Lawyers in the case had no comment or could not be reached.