National Group Underwriters Inc. has won a fight to keep a commission suit in the U.S. District Court near its offices in Fort Worth, Texas.
U.S. District Judge Terry Means blocked an effort by the defendant, Southern Security Life Insurance Company, Lake Mary, Fla., to move the case to a court near the Salt Lake City headquarters of its parent company, Security National Financial Corp.
“Although its corporate parent is located in Salt Lake City, Utah, [Southern Security] is a Florida corporation with its principal place of business in that state,” Means wrote, explaining his ruling.
Because National Group is based in Texas, and Southern Security in Florida, moving the case to Utah makes little sense, the judge added.
The ruling deals only with procedural matters, not with the underlying allegations.
Representatives for Southern Security were not available for comment.
Christian Tucker, a lawyer for National Group, praised the ruling. “I think the court made the right decision.”
NGU agreed in October 1997 to distribute small whole life insurance policies for Southern Security.