Chubb Unit Hit With Suit Over Defamation Litigation Costs

A Chubb Ltd. unit was hit with a lawsuit from another insurer seeking reimbursement for defense costs it paid in an underlying defamation case.

The insurance coverage complaint, filed Tuesday in the US District Court for the Northern District of Texas, arises from a case where Adam Ferrari accused William Francis—as CEO of rival Incline Energy Partners—of making false statements defaming Ferrari to third parties.

The alleged false statements included that Ferrari was a felon and was defrauding mineral owners and investors. The underlying case was voluntarily dismissed in May.

Mid-Continent Casualty Co., an American Financial Group Inc. unit, defended ...