However, a Section 13 claim was a different story. The trial court rejected this on the basis that Porch’s allegations related only to the appointment of the reinsurer, whereas the provision in question covered duties after appointment. The Fifth Circuit disagreed, finding that Porch had in fact alleged a series of failures by Gallagher that occurred long after the deal was struck. Among them: Gallagher’s failure to recognize the difference between a UPO collateral letter and a loan letter, its misrepresentation of the collateral letter as a loan letter, its failure to raise red flags during the transaction process, its assurances that the collateral was legitimate, and its assurances that the HOA could safely permit the withdrawal of $25 million from WestTwo’s reinsurance account.
Fifth Circuit revives Porch.com’s claim against Gallagher Re over WestTwo fraud & more related News Here
