Dellwood Insurance argues that AIG’s “rampant claims” must be dismissed

The legal spat between American International Group (AIG) and a startup made up of several former employees continued this week with another filing from Dellwood Insurance Group in support of its motion to dismiss AIG’s claims.

Dellwood, in a U.S. District Court filing in New Jersey, said AIG “cannot claim a monopoly on the experience and general knowledge of (Dellwood’s) employees” and also cannot prevent Dellwood from business “punching above its weight with tight claims,” ​​especially after dropping claims against three of its executives — all former AIG employees.

In April, AIG initially sued Dellwood and its founders Michael Price, Kean Driscoll and Thomas Connolly for misappropriation of trade secrets and confidential information, breach of contract and unfair competition, shortly after Dellwood launched with more than $250 million in equity and backed by RenaissanceRe, PartnerRe , Starr Insurance, Central Insurance and a group of individual investors for wholesale brokers in the small and mid-sized E&S market.

Dellwood, AIG alleged, used business strategies and trade secrets to form and compete against AIG’s E&S companies.

AIG then dropped the former executives from the lawsuit, but an amended complaint continued to name Dellwood Insurance. Since then, AIG and Dellwood have been going back and forth on whether the lawsuit can proceed. Dellwood stated a legal doctrine called res judicata prevents AIG from making the same allegations against the company as against its individual former employees. The AIG said the doctrine applies only to subsequent cases, not to bar claims in the same case. AIG called Dellwood’s arguments “quixotic.”

Related: In Latest Salvo, AIG Says Its Former Dellwood Executives Are ‘Bad Leavers’

In the latest filing, Dellwood reaffirms what it called a “basic and well-held principle that there can be no secondary liability without primary liability.” By dismissing the claims against Price, Driscoll and Connolly, AIG cannot sue Dellwood, the company said.

“Dismissal without prejudice to the individuals is a finding of no liability on the merits,” Dellwood said in the filing “If the individuals are not liable, Dellwood’s actions through those individuals cannot form a basis for liability, and AIG’s first amended complaint should be dismissed in its entirety.”

Dellwood added that AIG’s latest filing lacked court precedent and instead relied on “soundbites to deflect from an indisputable reality” that it is prevented from proceeding with litigation against Dellwood.

The case is American International Group Inc. v. Dellwood Insurance Group, U.S. District Court, District of New Jersey, no. 24-04456.

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