Okla. Judge Allows Coverage Action to Proceed on Alter Ego/Veil Piercing Theories

OKLAHOMA CITY — An Oklahoma federal judge has refused to dismiss a lawsuit against State Automobile Mutual Insurance Co. (Mutual) and its affiliates involving payment for a property damage claim and a reinsurance contract, ruling the claims were adequately pled.

In a March 22 order, Chief Judge Timothy DeGuisti of the U.S. District Court for the Western District of Oklahoma found the plaintiff, Bank of Commerce, stated plausible claims against the defendants under an alter-ego or piercing-the- corporate-veil theory.

The Bank originally filed suit in Oklahoma state court, asserting claims for breach of contract and breach of the duty …