Background

A major domestic insurance company provided coverage to a rent-a-car company for its entire fleet of cars. With the entry into the the rental market of a number of low-cost companies, margins became too thin for continued profitability. The rent-a-car company teetered on the brink of bankruptcy.

The Challenge

We were retained to collect some of the $1 million in outstanding insurance premiums. Given the financial condition of the company and its questionable prospects for resuscitation, the chances at first appeared bleak. Negotiations with senior management yielded little solace.

The Solution

We commenced litigation against the rent-a-car company and its principals in the United States District Court for the Eastern District of New York. Although liability was unquestioned by the company, recoverability from the failing company and its principals appeared doubtful.

The Result

By first working with the company as it was failing and then aggressively pursuing the claims against its principals as “named insureds”, we were able to recover over $500,000.00 in insurance premiums.