ACE Litigation Watch Highlights California Court Order Citing ACE Group for Improper Delay of Payments to Pepsico

ACE Insurance Litigation Watch, the online repository for lawsuits against the ACE Ltd. insurance company ACE, today highlighted that the ACE subsidiary Century Indemnity Insurance Company, after being cited two months ago by the Los Angeles District Court for “egregious” delays of payments owed to Pepsi- Cola Metropolitan Bottling Company Inc., a division of the Pepsico PEP, appears to have settled the litigation brought by Pepsico. The PepsiCo lawsuit charged the ACE subsidiary with, among other wrongdoings, bad faith business practices and breach of contract. In December 2010, the judge in the case, Hon. Stephen Wilson, issued a partial summary judgment order finding, among other things, that Century Indemnity breached its duty to defend Pepsi in a series of lawsuits stemming from Pepsi's ownership of a bottling plant in Northern California. In the order, Judge Wilson stated that the ACE Group company engaged in a “pattern of delaying its reimbursements to Pepsi,” including, in some cases, waiting almost two years to tender payment on valid claims. Pepsi originally filed its lawsuit against the Insurance Company of North America, who was succeeded by Century Indemnity following its acquisition by ACE, in Los Angeles district court in April, 2010. Judge Wilson issued the partial summary judgment order on December 28, 2010. Subsequently, on February 9, 2011, INA-Century Indemnity and Pepsi delivered notice to the court of the settlement.