The New York Attorney General's 2004 insurance investigation revealed compelling evidence pointing to the widespread practice of bid rigging and other improper transactions perpetrated by ACE, AIG, and Marsh, among others. ACE avoided a trial by paying a large settlement, agreeing to significantly change its business practices, and the company issued a formal apology to consumers who had been victimized.
Ex-employee Sues Westchester Fire Over Discrimination Settlement
May 22nd, 2013 - A former worker of a U.S. Virgin Islands company has sued Westchester Fire Insurance Co. in a bid to collect $1 million its client agreed to pay him over a workplace discrimination complaint.
Conrad Prevost Jr. sued the ACE Group unit in federal court in St. Croix as assignee of the rights of Islands Mechanical Management Co. LLC.
Westchester had sold Islands a business and management indemnity policy that was effective for a year starting on January 22nd, 2008.
During that period, Prevost said that he initially was denied employment by Islands and that when he was finally hired, he was discriminated against in his pay, benefits and assignments. He left Islands by July 18th, 2008, and sued the company for both discrimination and creating a hostile work environment.
After it was sued, Islands reportedly made notice of the Prevost suit thru Andrew Simpson. He was an attorney that Westchester worked with to defend Islands in two other discrimination suits.
Prevost said that Simpson never notified Islands that he could not accept notice of the claim on behalf of Westchester and did not tell the company that it had to do anything further to provide notice.
Islands eventually notified Westchester of the Prevost claim, within the reporting period called for in the policy. And Simpson continued to represent the company in the action.
Simpson submitted an invoice to Westchester on January 29th, 2011, and on July 26th, 2012, the insurer denied the claim. By then, Islands had again demanded that Westchester provide a defense and indemnification, and noted that the Prevost case had been consolidated with another civil action by the District Court where both were being heard.
On April 4th, Islands agreed to settle the Prevost claim for $1 million, plus $75,000 in litigation expenses. It agreed to enter a confessed judgment and assigned to him its claims.
Prevost asked the court to determine that the assignment was valid and enforceable. He also asked the court to declare that Islands complied with all its obligations under the policy and that therefore he is entitled to the $1 million.
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