Axis Insurance Unit Ducks Tobacco Group’s Unfair Practice Claims

A federal court tossed unfair and deceptive trade practice claims against an Axis Capital Holdings Ltd. insurance unit brought by a cooperative marketing association of tobacco farmers seeking payment for legal defense costs.

Axis Specialty Insurance Co. will still have to face all but one breach-of-contract claims over its refusal to fully reimburse the tobacco group under an excess liability policy with a $10 million limit, according to a Thursday order from the US District Court for the Eastern District of North Carolina.

US Tobacco Cooperative Inc. faced several lawsuits in the 2000s, including over allegations it improperly held on ...