Warranty Firm Drops Insurance Case Over Jurisdiction Issues

A company that works with retailers to offer extended warranty contracts to customers is dropping its suit against Lloyd’s insurers over a settlement reached in arbitration proceedings because it can’t establish diversity jurisdiction.

New Leaf Service Contracts Inc. and the Lloyd’s insurers filed a joint stipulation of dismissal without prejudice Tuesday in the US District Court for the Northern District of Texas.

• New Leaf sued the carriers in July, alleging the insurers wrongfully denied coverage for its settlement with another firm providing underwriting services.
• The court notified the parties of a jurisdictional deficiency in November.
• New Leaf said it ...