State Farm, Ohio, companies beat lender’s fraud trial at 6th Cir.

By Eric Heisig (June 17, 2022, 4:37 p.m. EDT) — The Sixth Circuit said a lender who wants a piece of a settlement State Farm Fire & Casualty Co. reached with two suburban Cleveland landlords cannot to pursue its fraud lawsuit against the insurer and two Ohio law firms in federal court because the state’s civil procedure has rules that say such challenges must be filed as part of the original litigation.

Business Development Corp. of South Carolina – which alleged that State Farm and the attorneys who brokered a settlement deliberately excluded it – should have brought its fraud and other claims in a motion for relief in the original lawsuit, the three-judge panel …

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