U.S. District Court Dismisses Accounting Firm’s Plea to Require Insurance Company to Defend a Lawsuit Against It

BVLaw
Court Case Digests
March 18, 2022
6399 Insurance Carriers, NEC
524298 All Other Insurance Related Activities
ESOP valuations, malpractice (appraisal)
business valuation, insurance, valuation report, employee stock ownership plan (ESOP), prior knowledge

Stout Risius Ross, LLC v. Aspen Specialty Ins. Co.
2022 U.S. Dist. LEXIS 48760
United States
Federal Court
New York
United States District Court
Edgardo Ramos

Summary

Stout Risius Ross LLC asked for a declaratory judgment to require Aspen Specialty Insurance Co. to defend Stout Risius Ross in a lawsuit brought against it by its former client, Wilmington Trust, in an ESOP matter. Stout Risius Ross performed a valuation for an ESOP transaction that the court later criticized in that matter (Brundle). After being sued by Wilmington Trust, Stout Risius Ross filed a claim with Aspen, which was denied by Aspen, citing the “prior knowledge” clause. The court denied Stout Risius Ross’ motion for declaratory judgment and did not allow Stout Risius Ross to amend its motion.

See Also

Stout Risius Ross, LLC v. Aspen Specialty Ins. Co.

Stout Risius Ross LLC asked for a declaratory judgment to require Aspen Specialty Insurance Co. to defend Stout Risius Ross in a lawsuit brought against it by its former client, Wilmington Trust, in an ESOP matter. Stout Risius Ross performed a valuation for an ESOP transaction that the court later criticized in that matter (Brundle). After being sued by Wilmington Trust, Stout Risius Ross filed a claim with Aspen, which was denied by Aspen, citing the “prior knowledge” clause. The court denied Stout Risius Ross’ motion for declaratory judgment and did not allow Stout Risius Ross to amend its motion.