Court Rejects Carrier's Constructive Fraud Claim in Effort to Recover Unpaid Premium

The Iowa Court of Appeals ruled Wednesday that a comp carrier that was stiffed on premiums by a now-defunct trucking company can't go after the assets the company sold to another corporation to recover the debt. Although the Travelers Indemnity Co. claimed that the sale of D.J. Franzen Inc.'s corporate assets was deliberately structured in a way that left the carrier unable to collect on the $550,661 it was owed, the Court of Appeals was not persuaded. The court said the record established that ICS Logistics Corp. had paid for the assets it acquired and that Trave...