Stern insurer wants out of policy, says it doesn’t cover claims involving “fraud”
by Kim Miller
An insurer for former foreclosure giant David J. Stern wants out of its policy, saying in a lawsuit that the company doesn’t cover “claims based upon, arising out of, directly or indirectly resulting from or in consequence of, or in any way involving a dishonest, fraudulent, criminal, or malicious act or omission.”
Admiral Insurance Company filed a lawsuit Thursday in the United States District Court, Southern District of Florida, saying it shouldn’t be responsible for defense expenses in two class-action claims filed against Stern in Palm Beach County. Stern had a $3 million policy with Admiral that expired last year.
The claims, filed in 2007 and 2009, allege Stern’s Plantation-based firm violated state laws by trying to collect unnecessary fees serving summonses to multiple “unknown” residents and tenants of homes in foreclosure and overcharging for title searches and examinations.
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