Applied Underwriters v. S.E.B. Servs. of New York
297 Neb. 246
Neb.2017Background
- Applied Underwriters, Inc. (Applied) and Applied Risk Services, Inc. (ARS) (Plaintiffs) are Nebraska entities; S.E.B. Services of New York, Inc. and 20th Century Services of New York, Inc. (S.E.B.) are New York corporations.
- S.E.B. entered a Reinsurance Participation Agreement (RPA) with Applied Underwriters Captive Risk Assurance Co. (AUCRAC); ARS is identified in the RPA as AUCRAC’s "billing agent."
- Applied sued S.E.B. in Nebraska state court on (I) a promissory note (Applied) for $8,144.27 and (II) breach of the RPA (ARS) for $752,926.98.
- After suit was filed, the promissory note was paid in full (December 2015). S.E.B. moved to dismiss for lack of personal jurisdiction and on forum non conveniens grounds.
- The district court dismissed for lack of personal jurisdiction (and alternatively inconvenient forum). On appeal the Nebraska Supreme Court found the promissory-note claim moot and that neither plaintiff had standing to sue for breach of the RPA, and affirmed dismissal on those grounds.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Count I (promissory note) is moot | Promissory note was unpaid when suit filed, so claim remains justiciable | Note was paid after filing; no live controversy remains | Moot — note was paid; claim dismissed as moot |
| Whether Applied/ARS have standing to enforce the RPA (Count II) | ARS: as AUCRAC’s billing agent under the RPA, ARS has agency authority to sue; Applied argued it had rights | S.E.B.: Plaintiffs are nonparties to the RPA and lack contractual or agency authority to sue | No standing — Applied admits lack of standing; ARS failed to show agency or express authorization to sue; claim dismissed for lack of subject‑matter jurisdiction |
| Whether personal jurisdiction/forum non conveniens required decision | Plaintiffs contended Nebraska was appropriate forum and district court erred in dismissing for lack of personal jurisdiction | S.E.B. argued lack of personal jurisdiction and that Nebraska was an inconvenient forum | Court did not reach merits — disposition affirmed on mootness (Count I) and lack of standing (Count II), obviating need to address jurisdictional forum issues |
Key Cases Cited
- Blakely v. Lancaster County, 284 Neb. 659 (defines mootness and its effect on jurisdiction)
- Deutsche Bank Nat. Trust Co. v. Siegel, 279 Neb. 174 (loan servicer standing as trustee’s agent when contract and power of attorney authorize suit)
- Field Club v. Zoning Bd. of Appeals of Omaha, 283 Neb. 847 (standing standard at pleading stage)
- Greater Omaha Realty Co. v. City of Omaha, 258 Neb. 714 (moot cases generally subject to summary dismissal)
- Citizens Opposing Indus. Livestock v. Jefferson County, 274 Neb. 386 (standing is a defect of subject‑matter jurisdiction)
