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Law360 (April 30, 2021, 5:53 PM EDT ) A trade show operator was wrong to file a $100 million suit in California over event cancellations and postponements caused by the coronavirus pandemic, insurers told a federal court, arguing their policies say coverage disputes should go to New York.
W.R. Berkley Syndicate Ltd. and Great Lakes Insurance SE on Thursday invoked a forum-selection clause, saying the suit should be sent to New York federal court to decide whether Emerald Holding Inc. is covered for trade-show events it had to cancel or postpone in response to the COVID-19 pandemic.
"Emerald could have (and should have) brought this action in the United States District Court for the Southern District of New York, which is the proper venue for this action," the insurers said.
Emerald filed its California federal suit in February, alleging the insurers owe an additional $100 million on top of what they've paid for canceled and postponed events. The trade show operator accused W.R. Berkley and Great Lakes of being nonresponsive and obstructive to delay and reduce further payments.
But the insurers in Thursday's filing said the policies clearly say disputes are to be litigated in courts located in New York. Emerald, which is headquartered in New York, won't be deprived of its "day in court," the insurers argued. Most of the trade show operator's witnesses are located in the state, they said.
Counsel for Emerald declined to comment Friday.
Representatives for the insurers did not immediately respond to requests for comment.
Emerald is represented by Marc D. Halpern, Gwendolyn M. Toczko and Susan P. Welch of Halpern May Ybarra Gelberg LLP.
The insurers are represented by Jamie L. Edmonson, Rhonda J. Tobin and Gerald P. Dwyer Jr. of Robinson & Cole LLP.
The case is Emerald Holding Inc. v. W.R. Berkley Syndicate Ltd. et al., case number 8:21-cv-00340, in the U.S. District Court for the Central District of California.
--Additional reporting by Lauren Berg. Editing by Leah Bennett.
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