Preview: LexisNexis® Mealey's™ Reinsurance Legal News
LexisNexis® Mealey's™ Reinsurance Legal News
Headline Reinsurance Legal News from LexisNexis®
New Jersey Panel Affirms Order Compelling Arbitration Involving Nonsignatories
TRENTON, N.J. - A New Jersey appellate panel issued an unpublished opinion on Oct. 13, affirming a lower court order compelling arbitration of a workers' compensation insurance premium dispute, holding that two nonsignatories to a reinsurance agreement relating to the workers' compensation insurance were still incorporated in the reinsurance agreement with its arbitration clause (Jade Apparel, Inc., et al. v. United Assurance, Inc., et al., No. A-2001-14T1, N.J. Super., App. Div.; 2016 N.J. Super. Unpub. LEXIS 2250).
California Federal Judge Says Court Lacks Jurisdiction Over Reinsurer
SAN FRANCISCO - A California federal judge on Oct. 12 granted a reinsurer's motion to dismiss in an asbestos coverage suit on the basis that the California federal court lacks jurisdiction over the reinsurer whose headquarters are based in the Commonwealth of Pennsylvania (The American Insurance Co. v. R&Q Reinsurance Co., No. 16-3044, N.D. Calif.; 2016 U.S. Dist. LEXIS 141467).
Insurer Says Court Holds Jurisdiction Over Individuals Named In Reinsurance Case
ATLANTA - An insurer argues in an Oct. 3 filing in a federal court in Georgia that the court holds jurisdiction over two of the people it sued for accepting money from a reinsurer to allegedly avoid reinsurance obligations (Canal Insurance Company, et al. v. Golden Isles Reinsurance Company, Ltd, et al., No. 15-cv-3331, N.D. Ga.).
Parties To Reinsurance Ask Court To Order Return Of $3.4M After Awards Vacated
DETROIT - A group of parties to a reinsurance treaty on Oct. 3 asked a federal court in Michigan to order another party to the treaty to honor an appeals court judgment vacating certain arbitration awards and order the party to return $3.4 million paid prior to the awards being vacated (Star Insurance Company, et al. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 14-cv-12915, E.D. Mich.).
Mortgage Insurance Reinsurer Says Claims By Rehabilitator Are Without Merit
CHICAGO - A mortgage insurance reinsurer argues in an Aug. 31 brief in a federal court in Illinois that breach of contract claims against it filed by the rehabilitator of two insolvent insurers are without merit (People of the State of Illinois, ex rel., Anne Melissa Dowling, Acting Director of Insurance of the State of Illinois, as Rehabilitator for Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corporation v. AAMBG Reinsurance Inc., No. 16-cv-07477, N.D. Ill.).
Liquidator Asks Court To Approve Reinsurance Commutation Agreement
CHICAGO - The liquidator of an insolvent insurer asked a New Hampshire court on Oct. 19 to approve a reinsurance commutation agreement, settling claims regarding reinsurance agreements issued in the 1970s and 1980s (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).
Judge Says Motion To Disqualify Counsel Was A Waste Of Time
NEW YORK - A federal judge in New York on Oct. 3 denied two alleged judgment creditors' motion to disqualify opposing counsel in a case where the alleged judgment creditors are asking the court to order payment of the confirmation of a reinsurance arbitration award (AmTrust North America, Inc. and Technology Insurance Company, Inc., as judgment creditors of Pacific Re, Inc. on behalf of its protected cell Pac Re 5-AT v. Safebuilt Insurance Services Inc., No. 16-cv-06033, S.D. N.Y.).
Judge Confirms $2M Reinsurance Arbitration Awards
NEW YORK - A federal judge in New York on Oct. 3 confirmed two reinsurance arbitration awards, noting that there was no opposition to the confirmation (Nutmeg Insurance Company, et al. v. Employers Insurance of Wausau A Mutual Company, No. 16-cv-00317, S.D. N.Y.).
Reinsurer Counters Motion To Vacate Arbitration Award
NEW YORK - A reinsurer told a federal court in New York on Sept. 22 that an arbitration award should be confirmed because a reinsured has not shown that an arbitration umpire was biased (Yosemite Insurance Company v. Nationwide Insurance Company, No. 16-cv-05290, S.D. N.Y.).
6th Circuit To Hear Another Appeal Over Arbitration Provision
CINCINNATI - The Sixth Circuit U.S. Court of Appeals is set to try to end a three-year debate regarding whether an arbitration provision in a reinsurance contract is valid under Nebraska law (Milan Express Co. Inc. v. Applied Underwriters Captive Risk Assurance Co. Inc., No. 16-5270, 6th Cir.).
Judge Orders Insurer, Reinsurer To Mediate Dispute
SAN FRANCISCO - A federal judge in California on Sept. 20 approved an insurer's and reinsurer's joint stipulation, thus ordering that the two mediate their $1.4 million asbestos-related reinsurance billing dispute (The American Insurance Company v. R&Q Reinsurance Company, No. 16-cv-03044, N.D. Calif.).
Judge: Reinsurers Failed To State A Claim For Relief In Breach Of Contract Suit
WASHINGTON, D.C. - Dismissal of claims in an insurance breach of contract and bad faith lawsuit is proper because reinsurers have failed to state a claim for relief against the Federal Crop Insurance Corp. (FCIC) regarding its modification of the methodology that sets crop premiums, a federal judge in Washington ruled Sept. 20 (ACE American Insurance Co., et al. v. Federal Crop Insurance Corp., et al., No. 14-1992, D. D.C.; 2016 U.S. Dist. LEXIS 128123).
Man Says Reinsurance Dispute Does Not Involve Him
ATLANTA - A man purportedly associated with a reinsurer sued for allegedly avoiding payment obligations tells a federal court in Georgia in a Sept. 21 brief that claims against him should be dismissed because the court does not hold personal jurisdiction over him (Canal Insurance Company, et al. v. Golden Isles Reinsurance Company, Ltd, et al., No. 15-cv-3331, N.D. Ga.).
Reinsurer Says Magistrate Judge's Discovery Orders Are Fundamentally Unfair
SYRACUSE, N.Y. - A reinsurer in a Sept. 19 brief asks a federal court in New York to reconsider its discovery rulings that the reinsurer says require it to produce reserve information while not requiring its reinsured to produce the same category of documentation (Utica Mutual Insurance Company v. Century Indemnity Company, No. 13-cv-00995, N.D. N.Y.).
Federal Judge: Fact Issues As To Material Breach Preclude Summary Judgment Ruling
PITTSBURGH - A Pennsylvania federal judge on Sept. 29 granted in part and denied in part dueling motions for summary judgment filed by a glass manufacturer insured, an insurer and a reinsurer in a coverage dispute over property damage and business interruption losses arising from the insured's equipment breakdown (The Hartford Steam Boiler Inspection and Insurance Co., et al. v. International Glass Products LLC, et al., No. 08-1564, W.D. Pa.; 2016 U.S. Dist. LEXIS 135045).
Assignee Tells Court It Is Appealing Denial Of Motion To Amend Complaint
NEW YORK - The assignee of certain reinsurance recoverables of an insolvent insurer told a federal court in Illinois on Sept. 22 that it is appealing to the Seventh Circuit U.S. Court of Appeals the court's holding that the assignee had not shown that leave to amend its complaint should be granted after a motion for summary judgment had been decided (Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No. 12-cv-06357, N.D. Ill.).
Special Deputy Receiver Reports Quarterly Status Of Liquidation Estate
AUSTIN, Texas - The special deputy receiver (SDR) of an insolvent insurer reported to a Texas court on Sept. 15 the financial status of the liquidation estate and outlined details of reinsurance recoverables and recoveries (The State of Texas v. San Antonio Indemnity Company, No. D-1-GV-13-001153, Texas, 201st Dist., Travis Co.).
Reinsurer Challenges Lack Of Specifics In Complaint Filed By Insolvent Reinsured
NEW YORK - A reinsurer told a federal court in New York on Sept. 28 that it is contemplating moving for dismissal of a complaint that it describes as "a bare notice pleading" (Roger A. Sevigny, the Commissioner of Insurance of the State of New Hampshire, as Liquidator of The Home Insurance Company v. Trygvesta Forsikring A/S, as successor in interest to Skandinavia Insurance Company Ltd., No. 16-cv-04874, S.D. N.Y.).
7th Circuit Affirms Lower Court Order Remanding Reinsurance Case
CHICAGO - A Seventh Circuit U.S. Court of Appeals panel on Sept. 1 affirmed a remand order from a lower court, noting that the reinsurance agreements at issue in the case have service of suit clauses that leave forum selection up to the reinsured (Pine Top Receivables of Illinois, LLC v. Transfercom, Ltd., No. 16-1073, 7th Cir.; 2016 U.S. App. LEXIS 16225).
Reinsurance Case Is Remanded For The 2nd Time
NEW YORK - A federal judge in New York on Sept. 6 remanded a reinsurance dispute, holding that the claims in a first amended complaint did not make allegations different enough from the original complaint to justify granting removal more than a year after the case was initially filed (R&Q Reinsurance Company v. Allianz Insurance Company, No. 16-cv-00794, S.D. N.Y.).
Judgment Creditors Say Court Holds Jurisdiction Over New York Foreign Insurer
NEW YORK - Parties that sued to enforce a $7.8 million judgment in their favor told a federal court in New York on Sept. 12 that the court holds jurisdiction over the party the judgment was against (AmTrust North America, Inc. and Technology Insurance Company, Inc., as judgment creditors of Pacific Re, Inc. on behalf of its protected cell Pac Re 5-AT v. Safebuilt Insurance Services Inc., No. 16-cv-06033, S.D. N.Y.).
Reinsurer, Reinsured Outline Need For Discovery In Reinsurance Dispute
PHILADELPHIA - A reinsurer and its reinsured told a federal court in Pennsylvania on Sept. 7 that they both anticipate the need for discovery in a late notice dispute regarding asbestos-related reinsurance billings (R&Q Reinsurance Company v. St. Paul Fire & Marine Insurance Company, No. 16-cv-01473, E.D. Pa.).
Insurers Say Reinsurer Gave Away Its Assets To Avoid Paying Claims
ATLANTA - Two insurers told a federal court in Georgia on Aug. 22 that their alleged reinsurer deliberately distributed its assets to certain parties to avoid having to honor its reinsurance obligations (Canal Insurance Company, et al. v. Golden Isles Reinsurance Company, Ltd, et al., No. 15-cv-3331, N.D. Ga.).
Rehabilitator: Insurers In Rehabilitation Are Owed Funds In Reinsurance Trust
CHICAGO - A mortgage insurance reinsurer on Aug. 17 removed to a federal court in Illinois a case in which the rehabilitator of two insurers alleges that the reinsurer violated the Real Estate Settlement Procedures Act (RESPA) with alleged kickbacks to certain captive mortgage lenders affiliated with the reinsurer (People of the State of Illinois, ex rel., Acting Director of Insurance, Anne Melissa Dowling v. HMC Reinsurance Company, a Vermont Corporation, No. 16-cv-08156, N.D. Ill.).
Conservator Explains Status Of Cut-Through Reinsurance Endorsements
SAN FRANCISCO - The conservator of a property casualty insurer responded in a California court on Sept. 6 to certain objectors to his conservatorship plan and explained how cut through reinsurance endorsements would be handled in the plan (Dave Jones, Insurance Commissioner of the State of California v. CastlePoint National Insurance Company, and DOES 1-50, No. CPF-16-515183, Calif. Super., San Francisco).