American Home Assurance Co. v. Republic Insurance

LASKER, District Judge.

Defendants move for sanctions against American Home and its attorneys pursuant to Rule 11 of the Federal Rules of Civil Procedure. Defendants assert that American Home “brought and prosecuted a wholly meritless claim with no basis in law” because the legal argument advanced by American Home — that an excess carrier must show prejudice when basing a defense on untimely notice — was not “warranted by existing law or by a nonfrivolous argument for the extension, modification, or reversal of existing law or the establishment of new law.” Fed. R.Civ.P. Rule 11(b)(2).

American…