Free Motion for Leave to File - District Court of Connecticut - Connecticut

Case 3:01-cv-02198-PCD

Document 323

Filed 06/28/2004

Page 1 of 5

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT ) ) ) ) Plaintiff, ) ) v. ) ) TRUSTMARK INSURANCE COMPANY, ) ) Defendant. ) __________________________________________) ) TRUSTMARK INSURANCE COMPANY, ) ) Third Party Plaintiff, ) ) v. ) ) TIG INSURANCE COMPANY, ) ) Third Party Defendant. ) ) SECURITY INSURANCE COMPANY OF HARTFORD,

Civil No. 301 CV 2198 (PCD)

June 28, 2004

TRUSTMARK'S MOTION FOR LEAVE TO FILE INSTANTER SUPPLEMENTAL MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT IN LIGHT OF FACTUAL DEVELOPMENTS DURING STAY Defendant Trustmark Insurance Company ("Trustmark") respectfully moves for leave to file instanter its Supplemental Memorandum In Support of its Pending Motion for Summary Judgment on Security's CUTPA/CUIPA claims. (The Supplemental Memorandum and its attached Declaration of Michael Hawksworth are filed concurrently, but under seal.) In support of its motion, Trustmark states as follows: 1. During the period that this matter was stayed, an arbitration panel found in

Trustmark's favor in John Hancock v. Trustmark, a matter to which Security had pointed as

Case 3:01-cv-02198-PCD

Document 323

Filed 06/28/2004

Page 2 of 5

alleged evidence that Trustmark had a general business practice of wrongfully denying claims. The arbitration award confirms that Security's allegations are unfounded, and that Trustmark was entitled to refuse to pay the claims at issue. 2. The dispute between John Hancock and Trustmark was tried before an

arbitration panel, resulting in an award against John Hancock and in Trustmark's favor on March 25, 2004. The arbitration panel denied John Hancock's claim and in fact awarded damages to Trustmark in the amount of $366,330. The District Court for the Northern District of Illinois granted Trustmark's petition to confirm that arbitration award on June 17, 2004. John Hancock Life Ins. Co. v. Trustmark Ins. Co., No. 04 C 2649 (N.D. Ill. June 17, 2004) (Zagel, J.). 3. The John Hancock ruling means that the fourth dispute Security invoked

as grounds for its claim has been adjudicated or resolved in Trustmark's favor. Trustmark has already advised the Court of Trustmark's arbitration victory in the FCIC matter and the extremely favorable settlements in the CNA and Lloyd's disputes. 4. Accordingly, the sole remaining claim is therefore Security's accusation

that Trustmark's pending fraud and misrepresentation claims against TIG somehow evidence a general Trustmark business practice of wrongful denial of claims. As courts have held, "claims of unfair settlement practices under CUIPA require a showing of more than a single act of insurance misconduct." Mead v. Burns, 199 Conn. 651, 659, 509 A.2d 11, 16 (1986); see also Aguilar v. United States, 825 F. Supp. 456, 458 (D. Conn. 1993); United Technologies Corp. v. American Home Assurance Co, 989 F. Supp 128, 155 (D. Conn 1997).

-2-

Case 3:01-cv-02198-PCD

Document 323

Filed 06/28/2004

Page 3 of 5

WHEREFORE, Trustmark respectfully requests that this Court grant it leave to file instanter the attached Supplemental Memorandum in Support of Trustmark's Motion for Summary Judgment on CUTPA/CUIPA claims. Respectfully submitted,

s/David R. Schaefer David M. Spector (ct21679) Paula J. Morency (ct24740) Everett J. Cygal (ct22765) SCHIFF HARDIN LLP 6600 Sears Tower Chicago, Illinois 60606-6473 Telephone: (312) 258-5500 Facsimile: (312) 258-5600 David R. Schaefer (ct04334) BRENNER, SALTZMAN & WALLMAN LLP 271 Whitney Avenue New Haven, Connecticut 06511 Telephone: (203)772-2600 Facsimile: (203)562-2098 E-Mail: [email protected] Attorneys for Trustmark Insurance Company

-3-

Case 3:01-cv-02198-PCD

Document 323

Filed 06/28/2004

Page 4 of 5

CERTIFICATE OF SERVICE

This is to certify that a true and accurate copy of the foregoing was served by United States first-class mail, postage prepaid, this 28th day of June, 2004 upon:

Frank F. Coulom, Jr., Esq. Marion B. Manzo, Esq. ROBINSON & COLE LLP 280 Trumbull Street Hartford, CT 06103-3597 Mark B. Holton, Esq. Kathryn E. Nealon, Esq. GIBSON, DUNN & CRUTCHER LLP 200 Park Avenue, 47th Floor New York, NY 10166-0193 David J. Grais, Esq. Kathryn C. Ellsworth, Esq. DEWEY BALLANTINE LLP 1301 Avenue of the Americas New York, NY 10019-6092 Counsel for Plaintiff Security Insurance Company of Hartford

David A. Slossberg. Esq. HURWITZ & SAGARIN, LLC 147 N. Broad Street Milford, CT 06560 Harry P. Cohen. Esq. Brian J. O'Sullivan, Esq. CADWALADER, WICKERSHAM & TAFT 100 Maiden Lane New York, NY 10038 Counsel for Third-Party Defendant TIG Insurance Company

-4-

Case 3:01-cv-02198-PCD

Document 323

Filed 06/28/2004

Page 5 of 5

Jeffrey Hellman, Esq. ZEISLER & ZEISLER, PC 558 Clinton Avenue P.O. Box 386 Bridgeport, CT 06605 David M. Spector, Esq. Paula J. Morency, Esq. William E. Meyer, Jr., Esq. Everett J. Cygal, Esq. SCHIFF HARDIN & WAITE 6600 Sears Tower Chicago, IL 60606-6473 Counsel for Defendant and Third-Party Plaintiff Trustmark Insurance Company

s/David R. Schaefer David R. Schaefer, Esq. (ct04334)

859808.doc

-5-