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. (S.E.B.) is a New York corporation providing security services.
- S.E.B. entered an RPA (Reinsurance Participation Agreement) with AUCRAC (Applied Underwriters Captive Risk Assurance Co.); ARS was identified in the RPA as AUCRAC’s “billing agent.”
- S.E.B. executed a promissory note in favor of "Applied and its affiliates and subsidiaries" for unpaid premiums; the note was later paid in full (December 2015).
- Applied sued S.E.B. in Nebraska (Douglas County) asserting (1) breach of the promissory note (count I) and (2) breach of the RPA (count II) seeking large damages for the latter.
- The district court dismissed for lack of personal jurisdiction (and alternatively as an inconvenient forum); plaintiffs appealed. The Nebraska Supreme Court ordered supplemental briefing on mootness of count I and standing to assert count II.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is count I (promissory note) moot because the note was paid? | Applied: Not moot because at filing S.E.B. owed sums. | S.E.B.: Note was paid post-filing, eliminating any live controversy. | Held: Count I is moot — payment after filing foreclosed meaningful relief. |
| Do Applied and/or ARS have standing to sue for breach of the RPA (count II) though neither is a party to the RPA? | Applied: N/A for RPA (admits lack of standing). ARS: As AUCRAC’s billing agent, ARS may enforce the RPA. | S.E.B.: Neither plaintiff is a party or authorized agent to enforce the RPA; RPA disclaims third-party enforcement. | Held: Neither plaintiff has standing; Applied lacks standing and ARS failed to show agency authority to sue. |
| Was dismissal properly based on personal jurisdiction or forum non conveniens? | Plaintiffs argued district court erred on jurisdiction and forum enforcement (forum selection). | S.E.B. maintained lack of personal jurisdiction and inconvenient forum. | Held: Court affirmed dismissal but on grounds of mootness (count I) and lack of standing (count II), not on personal jurisdiction or forum non conveniens. |
Key Cases Cited
- Blakely v. Lancaster County, 284 Neb. 659 (mootness doctrine and justiciability)
- Professional Firefighters Assn. v. City of Omaha, 282 Neb. 200 (mootness principles)
- Greater Omaha Realty Co. v. City of Omaha, 258 Neb. 714 (moot-case summary dismissal)
- Deutsche Bank Nat. Trust Co. v. Siegel, 279 Neb. 174 (agent/servicer standing where express authority and power of attorney existed)
- Field Club v. Zoning Bd. of Appeals of Omaha, 283 Neb. 847 (standing standard at pleading stage)
- In re Interest of Meridian H., 281 Neb. 465 (standing requires asserting own rights)
- Citizens Opposing Indus. Livestock v. Jefferson Cty., 274 Neb. 386 (standing as subject-matter jurisdiction defect)
