Amtrust Awarded More Than $1.1 Million in Settlement

December 23, 2003

A New York arbitrator has awarded more than $1.1 million to AmTrust Western Insurance Group Inc. (AWIG), a company controlled by Michael and George Karfunkel, in settlement of a claim originally brought by Frank James Brown involving the acquisition by AWIG of several agencies formerly owned by Brown. The award included the cancellation of a promissory note for $800,000 that was issued to Brown’s firm as part of the purchase price, and ordered Brown to pay $335,000 in damages resulting from his conduct involving the acquisition. The arbitrator dismissed all of Brown’s counterclaims that Brown originally asserted in his Texas lawsuit. “This award represents full vindication of AmTrust and the Karfunkels, who entered into the transaction in complete good faith,” said Jay J. Miller, New York counsel for AmTrust. AmTrust had accused Brown of fraud and unfair dealing in connection with the 1998 acquisition.

Was this article valuable?

Here are more articles you may enjoy.