Detrimental Reliance, Fraud Counterclaims Proceed in $10M Premium Dispute

NEW ORLEANS — A Louisiana federal judge has refused to dismiss counterclaims for detrimental reliance and fraud asserted by a managing general agent in a dispute over whether it must relinquish $10 million in premiums to Texas Insurance Co.

However, in the Feb. 24 order, Judge Brandon S. Long of the U.S. District Court for the Eastern District of Louisiana dismissed Talisman Specialty Underwriters Inc.’s counterclaims for tortious interference and violation of the Louisiana Unfair Trade Practices Act (LUTPA).

In January 2023, Talisman Holding Company Inc., an affiliate of Talisman, executed a stock purchase agreement (SPA) with Texas Insurance’s parent, …