Coverage Denied: MX Sports Fires Back
In a state court complaint filed in April and now removed to Tennessee federal court, MX Sports alleges that New York Marine and General Insurance Co., along with Coaction Specialty Insurance Group Inc. and Coaction Global Inc., wrongfully refused coverage for the underlying lawsuit.
MX asserts it is covered under a commercial general liability (CGL) policy issued to the American Motorcycle Association (AMA) — a policy it believes provides up to $5 million in coverage for the claim brought by the Faulkners.
Insurers Say Federal Court is Proper Venue
The insurance companies, represented by Lewis Brisbois Bisgaard & Smith LLP, argue in their notice of removal filed Monday that the case belongs in federal court due to diversity of citizenship and the size of the damages, which far exceed the federal jurisdictional threshold.
They maintain that MX’s demand for a coverage declaration over a $20 million injury lawsuit squarely places the dispute under federal oversight.
