Breakaway sued three days after Applied and its California Insurance Co. affiliate agreed to stop selling disputed workers' compensation policies in California.
Both insurers denied wrongdoing. California Insurance Commissioner Dave Jones said their sale of a policy to Shasta Linen Supply Inc. of Sacramento subjected the employer of 63 to hundreds of thousands of dollars of extra costs.
Similarly, Breakaway's RPA put that company at "imminent financial risk," and was "not understandable" by ordinary purchasers, Martin Schwartzman, former first deputy superintendent of New York's insurance department, said in a filing accompanying the complaint.
The case is Breakaway Courier Corp. d/b/a Breakaway Courier Systems v. Berkshire Hathaway Inc. et al, New York State Supreme Court, New York County, No. 654806/2016.
This article was provided by Reuters.