The law firm of Kasowitz, Benson, Torres & Friedman LLP announced that the US District Court for the District of Delaware has upheld a $4 million international arbitration award against American Life Insurance Company (ALICO), American International Group’s foreign life insurance subsidiary, for misappropriating the sales force of a large South American life insurance agency.
The law firm’s bulletin asserted: “The District Court earlier had upheld a jury verdict that a release obtained by ALICO in this matter had been procured through fraud committed by ALICO.
“Prior to 1993, the owner of the insurance agency was the principal representative throughout that continent for ALICO, the wholly-owned subsidiary of AIG. The arbitration Panel, convened under the Inter-American Commercial Arbitration Commission, found that: the ownership of the sales force was a ‘valuable property right;’ that ALICO misappropriated the sales force; and, that ALICO’s actions in doing so were ‘wrongful and improper.’
“Based on those findings, the Panel unanimously awarded the plaintiff monetary damages resulting from the destruction of his business in the amount of US$4 million, which represents the largest amount ever awarded for wrongful misappropriation of an agency sales force in South America. Following the Panel’s award, ALICO attempted to have the award vacated by a federal court in Delaware, but was denied. The Court has affirmed the Panel’s award in all respects.”
Topics AIG
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