Hotel Owner Files Amended Complaint Against Reinsurer in ‘Cut-Through’ Action

PHOENIX — A Phoenix hotel owner has filed an amended complaint against its insurer Selective Insurance Company of America and reinsurer Hartford Steam Boiler Inspection and Insurance Co., demanding coverage for extensive flood damage caused by an air conditioning system that malfunctioned.

In a Jan. 18 complaint filed in the U.S. District Court for the District of Arizona, Midtown Hotel Group LLC alleged that Hartford is contractually liable for the claim because it controlled decisions regarding payment and settlement of the claim.

Hartford moved to dismiss Midtown’s original complaint for failure to state a claim, arguing it was not Midtown’s …