Startup Dellwood files motion to dismiss against AIG

Dellwood Insurance Group, LLC, an insurance holding company specializing in E&S coverage, has filed a motion to dismiss an unfair competition lawsuit filed by AIG. The case is AIG et al. v. Dellwood Insurance Group LLC et al.

The principals of Dellwood Insurance Group, founder, Michael Price and senior executives Kean Driscoll and Thomas Connolly, previously worked for AIG in various capacities. Price launched Dellwood in December 2023, following his resignation from AIG in March 2023 and the termination of his employment with the company in June 2023. He had previously served as AIG’s chief executive officer of North America General Insurance. Driscoll joined Dellwood at its chief underwriting officer in March 2024, the same position he held at AIG, and Connolly become the company’s chief financial officer in March 2024. Previously, he had served as AIG’s chief financial officer of North America General Insurance and was a member of the board of directors of AIG Insurance Company of Canada.

AIG alleges that the company and its principals violated their fiduciary responsibilities to AIG in an effort to “jump start its business by misappropriating AIG’s trade secrets and Confidential Information, and inducing AIG executives to breach their legal obligations to AIG.” The company sent a cease-and-desist letter two weeks following Dellwood’s public launch. In its court filing, AIG alleges that the principals of Dellwood did not have any significant experience about E&S insurance, and the knowledge they did have had been garnered from AIG. However, this is disputed by the principals of Dellwood, who all had previously worked for other insurers that operated in the E&S space.

After the principals and Dellwood filed a pre-motion letter with their arguments for dismissal, AIG voluntarily dismissed its action with prejudice against the principals, who it alleged were responsible for the theft of trade secrets and breaching their fiduciary responsibilities.

Two months later, AIG filed its First Amended Complaint (FAC), indicating that its purpose was to “add new factual details concerning Dellwood’s unlawful conduct,” however Dellwood says the FAC should be “dismissed in its entirety with prejudice” according to court documents, citing the doctrine of res judicata, which prevents a party from relitigating a matter for the same cause of action.

Dellwood Insurance Group, LLC is represented by New York-based Cohen Ziffer Frenchman & McKenna, LLP and New Jersey-based O’Toole Scrivo, LLC. AIG is represented by New Jersey-based Marino, Tortorella & Boyle, P.C. and New York-based Quinn Emanuel Urquhart & Sullivan, LLP.

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