The Firm Obtains Dismissal of Mortgagee's Suit against Markel

In Wells Fargo Home Mortgage v. Banco Popular, et al., Kings Co. 6987/2009, Wells Fargo, the mortgagee of an insured property, sued, among others, Markel International Insurance Company for policy proceeds following a fire at the property.  Wells Fargo alleged that Markel "failed to exercise reasonable care in the processing of the check to insured" by issuing a check that was mailed to the insureds' residence, which check was made payable to both the mortgagee and insured.  One of the insureds allegedly forged the mortgagee's endorsement, cashed the check, and absconded with the proceeds.  Justice Partnow agreed with the arguments made in Markel's Pre-Answer Motion to Dismiss, including the failure of Wells Fargo to state a recognizable cause of action against Markel.  As a result, on September 8, 2009 -- at the conclusion of the argument on the motion -- the Court dismissed all of claims in that action that were against Markel.