CompUSA Insurer Battles Claim Award

April 17, 2001

Federal Insurance Company, an insurer of CompUSA and that company’s former head James Hapin, filed a lawsuit in Dallas, Tex., in which the insuere stated it will not pay Halpin’s share a $454 million jury award in a breach of contact case. Federal Insurance is a unit of the Chubb Corporation.

According to a Reuter’s report, Federal Insurance maintained that CompUSA filed to provide notice regarding a court battle which resulted in the award until a week after the verdict had been handed down. According to that verdict, CompUSA, Halpin, and Mexican billionaire Carlos Slim (the owner of Grupo Sanborns, of which CompUSA is a part), were ordered by a Dallas jury to pay the $454 million to investor group, COC Service Ltd.. for breach of contract.

In its lawsuit, Federal Insurance stated as Halpin had been working in his own interest, as opposed to that of CompUSA, he was excluded from coverage.

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