HNRK Secures Win for StoneX in Coverage Dispute at New York Supreme Court
New York, NY—HNRK recently secured a win for StoneX Commodity Solutions, a trader of physical commodities, in an insurance coverage dispute at the New York Supreme Court. The decision, issued on January 8 by Judge Lyle E. Frank, grants partial summary judgment to StoneX as it relates to the loss of more than 500,000 bushels of soybeans resulting from a warehouse owner’s fraud.
The action was filed by plaintiffs Endurance American Insurance Company, Zurich American Insurance Company, and Atain Insurance Company, concerning StoneX’s claim for coverage for losses caused by a fraudulent scheme perpetrated by a grain storage company. The court found that StoneX established an actual loss during the relevant policy period, declaring there is insurance coverage to cover the loss of 502,315 bushels of soybeans, and ruling the plaintiffs breached the underlying contract for refusing to provide coverage.
The amount of damages and StoneX’s counterclaim for bad-faith claims handling remain to be adjudicated.
The litigation involves issues of first impression over the timing and valuation of StoneX’s loss, as well as a rarely litigated issue relating to the policy’s Sue & Labor provision.
The HNRK team representing StoneX in the win includes partners Joshua Blosveren and Bradley Nash, and associate Shanene Frederick. The case is Endurance American Insurance Company, Zurich American Insurance Company, and Atain Insurance Company v. StoneX Commodity Solutions in the New York Supreme Court.