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Jose C. Rodriguez as Trustee of the Bankruptcy Estate of Wibracht v. Travelers Casualty and Surety Co.

Court: ED Tx  04/26/2024   Surety Bond Insurer's and Insurance Agency's Motions to Dismiss Granted in Part Under the False Claims Act in Qui Tam Action

A court of the Eastern District of Texas granted in part motions to dismiss filed by an insurance agency and a surety bond insurer, finding that some of the claims alleged are time barred, but that it is not against public policy to allow the claims that are not time barred to proceed against a bond issuer simply because the issuer underwrites high-risk contractors and that the plaintiff debtor and bankruptcy trustee are not judicially estopped from bringing claims under the False Claims Act after inadvertently failing to initially disclose these claims to a bankruptcy court.

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