NEW YORK--(EON: Enhanced Online News)--ACE Insurance Litigation Watch, the online repository for lawsuits and other claims against the ACE Ltd. insurance company (NYSE: ACE) and its ACE Group subsidiaries, posted that a lawsuit related to the “BP Claims Process” established in the wake of the Deepwater Horizon Oil Spill is moving forward in Louisiana Federal Court. The suit, which requests class action status, names the ACE Group subsidiary ESIS as a co-defendant and seeks damages for racketeering, conspiracy, and mail fraud.
“delay and reduce the payment of legitimate legal damages by lulling class members into a false understanding of the availability of recoverable damages at law.”
According to the complaint, shortly after the Deepwater Horizon oil spill began, BP engaged ESIS and others to help administer the process of settling claims with oil spill victims. The manner in which ESIS handled its task became the subject of some controversy following media reports of delayed and denied claims payments. Prior to ESIS’s removal from its position by the Obama appointed claims czar, a class action was filed in Alabama Federal Court on behalf of the State of Alabama claiming that BP, ESIS, and others conspired to “delay and reduce the payment of legitimate legal damages by lulling class members into a false understanding of the availability of recoverable damages at law.”
In September 2010, a motion to stay the ESIS/BP RICO class action complaint was granted pending transfer of the matter to Louisiana Federal Court. Ten months later, on July 6, 2011, the matter was transferred to the Eastern District of Louisiana and it now appears the racketeering case is proceeding towards trial. The RICO action will join at least 291 other Deepwater-related lawsuits that are being heard as part of a consolidation of complaints by the U.S. Judicial Panel on Multi District Litigation.
The ACE Group’s North American operations are overseen by executive John Lupica. ACE Limited (NYSE:ACE), which is included in the S&P 500 index, is the ultimate parent of U.S. insurance companies ACE American Insurance Company, ACE American Lloyds Insurance Company, ACE American Reinsurance Company, ACE Capital Title Reinsurance Company, ACE Commercial Risk Services, ACE Employers Insurance Company, ACE Fire Underwriters Insurance Company, ACE Indemnity Insurance Company, ACE Insurance Company of Illinois, ACE Insurance Company of Ohio, ACE Insurance Company of Texas, ACE Insurance Company of the Midwest, ACE Property and Casualty Insurance Company, ACE Tempest Reinsurance USA, ACE USA, ACE Westchester, Allied Insurance Company, Atlantic Employers Insurance Company, Bankers Standard Fire and Marine Company, Bankers Standard Insurance Company, Century Indemnity Company, Century Reinsurance Company, Combined Insurance, Combined Life Insurance Company of North America, ESIS, Inc., Illinois Union Insurance Company, INA Surplus Insurance Company, Indemnity Insurance Company of North America, Insurance Company of North America, Pacific Employers Insurance Company, Rain and Hail Agricultural Insurance, Westchester Fire Insurance Company, and Westchester Surplus Lines Insurance Company.
ACE Insurance Litigation Watch is currently tracking more than 250 cases in Federal courts alone. Visit www.ACEinsuranceWatch.com for more information. ACE Insurance Litigation Watch is not affiliated with the ACE Insurance Group in any way.