Hunton Insurance Recovery Blog

On January 12, 2016, a federal court in Utah refused to dismiss a bad faith claim brought by Federal Recovery Services against Travelers Property Casualty Company of America, despite finding that there was no duty to defend FRS under Travelers’ “CyberFirst Policy.” Travelers Property Casualty Company of America et al. v. Federal Recovery Services et al., Case No. 2:14-cv-00170. FRS sought a defense and indemnity for a lawsuit filed against it by Global Fitness Holdings, LLC, a fitness center operator. Global Fitness had alleged that FRS intentionally misused the credit card and bank account information of Global Fitness’ customers, which consequently interfered with FRS’s business dealings.