Breach of Contract, Fiduciary Duty Claims Survive in Dispute Over Reinsurance Trust Agreement Assets

COLUMBIA, S.C. — A South Carolina federal judge has refused to dismiss breach of contract, breach of fiduciary duty and negligent misrepresentation claims asserted against a bank accused of breaching two trust agreements by mishandling assets that were intended to secure reinsurance obligations.

On Nov. 24, Judge Michelle Childs of the U.S. District Court for the District of South Carolina ruled that the plaintiff sufficiently alleged that U.S. Bank National Association breached specific duties set forth in the trust agreements and had a duty of good faith and care to the plaintiff.

Companion Property and Casualty Insurance Co. is a …