Wakaya Perfection has sued their insurer, Liberty Mutual, for failing to uphold an insurance coverage contract.
In answering Wakaya Perfection’s lawsuit, Liberty Mutual has circled and filed a counterclaim.
Wakaya’s lawsuit was filed in an Ohio District Court docket. Sadly the case doesn’t seem on Pacer, so I’m unable to trace all filings.
What I do have is Liberty Mutual’s reply to Wakaya’s grievance, together with their counterclaim.
Liberty Mutual claims Wakaya Perfection approached CAL Insurance coverage & Associates for protection on March 1st, 2016.
CAL Insurance coverage & Associates (are) an impartial entity who … had restricted authority to solicit insurance coverage insurance policies on behalf of Liberty Mutual.
Of their utility, Wakaya requested their protection be back-dated to February twenty first, 2016.
The acknowledged cause was Wakaya had an current ‘insurance coverage coverage from CNA Monetary Company that it needed to cancel.’
What Wakaya didn’t inform Liberty Mutual, as they allege, is that on February twenty second Wakaya acquired a requirement letter from Youngevity.
This might finally spark Youngevity’s long-running lawsuit towards the corporate.
The backdating course of required
Wakaya to certify that it had no recognized losses from February 21, 2016 by March 3, 2016.
On or about March 3, 2016, (Todd) Smith, on behalf of Wakaya, executed a no recognized losses letter which acknowledged that Wakaya was not conscious of any threatened claims or potential losses from February 21, 2016 by March 3, 2016.
That illustration was false.
Youngevity filed their lawsuit towards Wakaya on March seventeenth, 2016.
As per Todd Smith’s personal testimony, Liberty Mutual asserts he knew Youngevity was going to file go well with previous to making use of for insurance coverage.
On the time Wakaya and Smith made the false representations, they had been conscious of their falsity as they’d beforehand been placed on discover on a number of events that Youngevity was threatening and planning to convey litigation towards Wakaya and Smith.
5 months after Youngevity pursued them in California, Wakaya filed a declare with Liberty Mutual.
Thus far litigation between Youngevity and Wakaya has value Liberty Mutual “a number of thousands and thousands of {dollars} in lawyer’s charges and prices”.
Liberty Mutual’s counterclaim challenges the validity of Wakaya’s insurance coverage contract, on the premise it was utilized for through false illustration.
Liberty Mutual claims that the insurance policies are void and unenforceable due to Wakaya and Smith’s materials representations when making use of for the insurance policies.
Wakaya and Smith content material that the insurance policies are legitimate and enforceable.
Liberty Mutual are demanding not less than $4 million in damages, in addition to their very own authorized prices.
Liberty Mutual’s reply and counterclaim had been filed on August twentieth, 2019. Once more, because of the venue, we’re unable to trace the case internally ourselves.
Pending any updates we’d obtain on the end result of Wakaya vs. Liberty Mutual, keep tuned…