Direct sues its Florida general agency

Local auto insurer says Links Insurance refuses to pay promised commissions, fees

For the second time this year, a Nashville insurance company has sued “one of its own” for violating a contract.

Direct General Insurance has sued Florida-based Links Insurance Services, its managing general agency in the Sunshine State, in Nashville’s District Court. The complaint, which was filed May 16, accuses Links of contract breaches — specifically a refusal to pay a promissory note it had signed with Direct.

That $1.1 million loan was for commissions and other fees Links owed the company from its sales over a certain period of time of Direct's Insurance products in Florida.

"All we can say at this time is the complaint will have to speak for itself," said attorney James DeLanis with the local office of Baker Donelson Bearman Caldwell & Berkowitz. DeLanis wouldn't comment further on the case but reiterated the business dispute nature of the litigation as it relates to the now terminated agency agreement between the parties.

Links officials could not be reached for comment Monday.

Direct's suit is similar to one filed in March by Green Hills-based First Acceptance Insurance, which sued United Kingdom-based Catlin Insurance, for breaches of contract, specifically the "insurer of insurers" reticence to pay a professional liability claim made by First Acceptance. That litigation was moved from Davidson County Chancery Court to Nashville’s District Court this month.