HNRK Coverage Corner

On January 8, 2024, Justice Frank of the New York County Supreme Court issued a decision in Endurance Am. Ins. Co. v. StoneX Commodity Solutions, LLC, Index No. 653234/2022, granting summary judgment as to liability to StoneX Commodity Solutions, a trader of physical commodities, in an insurance coverage dispute, arising from a loss of more than 500,000 bushels of soybeans as a result of a warehouse owner’s fraud.

The court held that StoneX established an actual loss during the relevant policy period, declaring there is insurance coverage to cover the loss of 502,315 bushels of soybeans, and ruling the plaintiffs breached the underlying contract for refusing to provide coverage.

The amount of damages and StoneX’s counterclaim for breach of the covenant of good faith and fair dealing remain to be adjudicated.

The litigation involves issues of first impression over the timing and valuation of StoneX’s loss, as well as a rarely litigated issue relating to the policy’s Sue & Labor provision.

The HNRK team representing StoneX in the win includes partners Joshua Blosveren and Bradley Nash, and associate Shanene Frederick.

Read more about the case in Law360 here and in Mealey’s Emerging Insurance Disputes here.