Abstention Is Improper, Judge Says In Coverage Suit Over Alleged Fraud Scheme

Mealey's (October 12, 2015, 1:31 PM EDT) -- GULFPORT, Miss. — A Mississippi federal judge on Oct. 7 denied a hospital’s motion to dismiss a directors, officers and private company liability insurer’s declaratory judgment lawsuit, finding that abstention is improper (AmTrust International Underwriters Ltd. v. Kingsbridge Holdings LLC, et al., No. 15-184, S.D. Miss.; 2015 U.S. Dist. LEXIS 136852).

(Memorandum opinion and order available. Document #13-151015-017Z.)

Alleged Scheme

On Nov. 1, 2013, Pearl River County Hospital sued its former CEO and Performance Accounts Receivable LLC (PAR), which is a finance company that was recommended...
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