The lawsuit filed by Porch Group against broker Gallagher Re regarding the Vesttoo reinsurance letter of credit (LOC) collateral fraud has been dismissed with prejudice by the Texas court. But Porch has said it intends to continue to pursue recourse in the matter.
Porch Group is the owner of insurer Homeowners of America Insurance Company (HOA), a company that particularly affected when the Vesttoo reinsurance letter of credit (LOC) collateral fraud caused financial impacts to the firm.Porch had filed a lawsuit against broking group Arthur J. Gallagher, claiming its reinsurance arm Gallagher Re had “grossly mismanaged” the administration of a reinsurance arrangement subject to collateral posted by Vesttoo that turned out to be fraudulent.
As we later reported, Gallagher responded to the lawsuit and the complaint made by Porch, urging the Texas court to dismiss the petition “in its entirety and with prejudice.”
Porch had then responded, rejecting broker Gallagher’s motion to dismiss the legal case, saying it believed the company had failed to satisfy the obligations of their contract.
In a judgement filed this week, it was “ordered, adjudged, and decreed that this action and all claims by Plaintiff Porch.com, Inc. against Defendant Gallagher Re Inc. are dismissed with prejudice.”
The judgement also decrees, “That Plaintiff take nothing against Defendant; that all relief not granted is denied unless applicable law allows a party to seek some type of postjudgment relief; and that all allowable and reasonable costs are taxed against Plaintiff.”
Referring to arguments made by Gallagher Re in its motion to dismiss the case, the order concludes that the sole breach of contract claim made by Porch against the broker is dismissed with prejudice, while a contact claim against the broker’s parent AJG is denied as moot, as AJG had been voluntarily dismissed from the action.
So closes another chapter in the Vesttoo saga.
In response to an Artemis enquiry to the companies, a Porch spokesperson said, “We will continue to vigorously pursue recourse in this matter, including via all available legal and other processes,” while Gallagher Re declined to comment.
Whether Porch continues to pursue Gallagher Re specifically remains to be seen. But the company is persisting in its efforts to recover more of the value it lost and damages it suffered due to the Vesttoo letter of credit collateral fraud from other avenues.
As a reminder, Porch recently secured a $7.1 million settlement over constructive trust claims with the Vesttoo Creditors Liquidating Trust in relation to so-called constructive trust claims linked to a reinsurance transaction.
The insurer continues to pursue a court case against China Construction Bank, claiming its staff were complicit in the reinsurance collateral fraud, as well.
Read all of our coverage of news related to the fraudulent or forged letter-of-credit (LOC) collateral linked to Vesttoo reinsurance deals.
