Canal Insurance v. Lebanon Insurance Agency, Inc.

OPINION AND ORDER

JAMES P. JONES, Chief Judge.

In this diversity action by an insurance company seeking indemnification from an insurance agency for an alleged mistake in submitting a policy application, the defendant moves to dismiss the plaintiffs claim as insufficient. For the reasons that follow, I will grant the motion in part and deny it in part.

I

The plaintiff, Canal Insurance Company (“Canal”), seeks recovery from the defendant, Lebanon Insurance Agency, Inc. (“Lebanon Insurance”), for the amount Canal paid in settlement of a claim by a policyholder under a motor vehicle liability…