Court Denies U.S. Bank and American Security Insurance Company’s Motions to Dismiss

On December 11, 2012, the Court issued an order denying Defendants’ motions to dismiss the lawsuit, and ruled that Plaintiff Stephen Ellsworth stated valid claims of breach of contract, breach of the covenant of good faith and fair dealing, unjust enrichment, and violation of the California Unfair Competition Law against U.S. Bank.  The Court also held that Plaintiff stated valid unjust enrichment and California Unfair Competition claims against American Security Insurance Company.  Consistent with other courts, the Court held that these claims were supported by Plaintiff’s allegations that U.S. Bank and/or its affiliates unlawfully accepted kickbacks or commissions from American Security Insurance Company in connection with force-placed insurance and purchased backdated flood insurance coverage for periods of time that already had elapsed.