Insurer sues Electricity Maine to avoid potential costs from class-action suit
An insurance company has filed a lawsuit against Electricity Maine seeking to avoid potential costs or damages that could result from a separate class-action lawsuit filed against the Auburn retail electricity supplier last year.
Last November, a class-action lawsuit was filed in U.S. District Court in Portland claiming that Electricity Maine used fraud and deception to enroll 200,000 Maine households and small businesses with the promise of substantial cost savings. The suit seeks $35 million in damages.
Now Electricity Maine’s insurer, Zurich American Insurance Co., has filed a lawsuit against the company, the Bangor Daily News reported.
Zurich said it doesn’t have an obligation to cover the Electricity Maine’s costs or damages that might come from the class-action suit.
In its counter-argument, Electricity Maine said the insurance policy it had from 2011 to 2012 should cover its costs and potential losses.
BDN, whose investigative series on retail electricity sellers by reporter Darren Fishell resulted in a new Maine law tightening the state’s regulations, also reported that in the insurance dispute, the parties agreed to remove as a party Electricity Maine’s current owner, Houston-based Spark HoldCo, because it didn’t own Electricity Maine during the time the policy was active.
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