WHEELING — A tax preparation services company is suing an insurance company, alleging first party common law bad faith, first party statutory bad faith and breach of contract.
K.R. Enterprises Inc., doing business as Jackson Hewitt Tax Service, filed a complaint in U.S. District Court for the Northern District of West Virginia against Ohio Security Insurance Company, alleging the company denied its duty to defend the plaintiff from any and all claims asserted in the four lawsuits filed against the K.R. Enterprises in McDowell Circuit Court.
According to the complaint, between November 2014 and November 2015, K.R. Enterprises was covered by the policy it purchased from Ohio Security. The suit says the policy included business liability coverage for “personal and advertising injuries" that K.R. Enterprises, the insured, becomes legally obligated to pay as damages.
However, the suit alleges, the defendant denied coverage under the policy and would not participate in the defense of K.R. Enterprises in the four suits. The plaintiff alleges Ohio Security Insurance has the duty to defend the insured.
K.R. Enterprises seeks a bench trial, damages, penalties, pre- and post-judgment interest, attorney fees and all other just and proper relief. It is represented by attorneys R. Dean Hartley and Mark R. Staun of Hartley Law Group PLLC in Wheeling.
U.S. District Court for the Northern District of West Virginia case number 5:18-cv-00127-JPB