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 that administer workers’ compensation programs; S.E.B. Services of New York, Inc. (S.E.B.) is a New York corporation providing security services.
- S.E.B. entered a Reinsurance Participation Agreement (RPA) with AUCRAC (a captive insurer) and a promissory note in favor of "Applied . . . and its affiliates" for unpaid premiums; ARS is identified in the RPA as AUCRAC’s "billing agent."
- Plaintiffs sued S.E.B. in Nebraska district court asserting (1) breach of the promissory note (Applied) for $8,144.27 and (2) breach of the RPA (ARS) for $752,926.98. S.E.B. moved to dismiss for lack of personal jurisdiction and, alternatively, forum non conveniens.
- Before and during the motion proceedings, the promissory note was paid in full (December 2015), and parties acknowledged this in supplemental filings; the district court dismissed for lack of personal jurisdiction (and alternatively inconvenient forum).
- On appeal the Nebraska Supreme Court directed supplemental briefing on mootness of count I (note) and whether Applied/ARS had standing to sue for breach of the RPA; the Court concluded those two issues were dispositive.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether count I (promissory note) is moot | Note was unpaid when filed, so claim remains justiciable | Note was paid in full after filing, removing any live controversy | Moot — note paid after filing; count I dismissed as moot |
| Whether Applied/ARS have standing to sue for breach of the RPA | ARS: as AUCRAC’s billing agent, ARS may enforce RPA; Applied contends its affiliate status justifies suit | S.E.B.: neither Applied nor ARS is a party to the RPA and no authority was shown empowering them to sue | No standing — Applied lacks standing; ARS failed to show agency/power to sue on AUCRAC’s behalf; count II dismissed for lack of subject‑matter jurisdiction |
| Whether Nebraska court lacked personal jurisdiction or forum was inconvenient | Plaintiffs preserved forum and contested jurisdiction rulings below | S.E.B. argued lack of personal jurisdiction and moved dismissal on forum‑non‑conveniens grounds | Court did not reach these original grounds; affirmed dismissal on mootness (count I) and lack of standing (count II) |
Key Cases Cited
- Blakely v. Lancaster County, 284 Neb. 659 (2012) (defines mootness and its effect on justiciability)
- Deutsche Bank Nat. Trust Co. v. Siegel, 279 Neb. 174 (2010) (agent/servicer may have standing to sue when contract grants express authority and power of attorney)
- Greater Omaha Realty Co. v. City of Omaha, 258 Neb. 714 (2000) (moot cases are generally summarily dismissed)
- Field Club v. Zoning Bd. of Appeals of Omaha, 283 Neb. 847 (2012) (plaintiff bears burden to establish standing; pleading stage standard is liberal)
- Citizens Opposing Indus. Livestock v. Jefferson Cty., 274 Neb. 386 (2007) (standing is a subject‑matter jurisdiction defect)
