Mealey's Reinsurance
-
May 31, 2023
Bankruptcy Judge Won’t Dismiss Adversary Proceeding Over Reinsurance Collateral
ST. LOUIS — A federal bankruptcy judge in Missouri has denied a motion to dismiss an adversary proceeding concerning reinsurance collateral; the defendant had argued that the requested relief “is contrary to their contractual commitments,” and the plaintiffs contended in part that the motion sought “a determination of affirmative defenses that have not yet been pled.”
-
May 30, 2023
Texas Panel: Federal Ruling Constitutes Res Judicata For Arbitration Bid
EASTLAND, Texas — Ruling in part that a federal court’s judgment that was rendered after a Texas trial court’s order and is being appealed “now precludes any determination on the issue of arbitrability in this court or in the court below,” a Texas appellate panel denied an interlocutory appeal in a dispute over whether a school district can be compelled to arbitrate under a reinsurance contract to which it is not a party.
-
May 30, 2023
High Court Won’t Review 6th Circuit FAA Exclusive Remedy Insurance Crop Rulings
WASHINGTON, D.C. — The U.S. Supreme Court on May 30 denied certiorari regarding similar rulings that two farms argued “present several fundamental questions about the relationship between private agreements and the FAA [Federal Arbitration Act] . . . in the context of contractual language that is found in every federally sanctioned crop insurance policy.”
-
May 26, 2023
Parties Dispute TRO Bid In Suit Over Alleged Raid On Facultative Reinsurance Group
CHICAGO — Plaintiffs who allege that a rival used a “well-established Playbook” to conduct an unlawful raid of their facultative reinsurance group asked an Illinois federal court to issue a temporary restraining order (TRO), and the defendants countered that “[t]he only emergency is likely [the plaintiffs’] desire to unlawfully stifle competition.”
-
May 25, 2023
Delaware Discovery Ruling Addresses Reserve Info, Reinsurance Communications
NEW CASTLE, Del. — A motion to compel insurers to produce documents relating to reinsurance communications and internal loss reserve information was granted in a Delaware court in a suit over more than $434 million in claimed losses after a landslide and explosion in September 2018 closed a natural gas pipeline for more than two years.
-
May 24, 2023
Judge: Bad Faith Claim Against Reinsurer Is Stated Under Direct-Liability Theory
PHOENIX — An Arizona federal judge on May 23 mostly denied dismissal of claims against a reinsurer in a breach and bad faith suit over water damage, ruling in part that the insured “has adequately stated a claim for bad faith against [the reinsurer] on a direct-liability theory, notwithstanding its admitted lack of contractual privity.”
-
May 24, 2023
Some Claims In Coverage Row Over Afghan Facility Are Stayed After Injunction
NEW YORK — An English court has entered an anti-suit injunction regarding certain claims in a New York federal lawsuit over whether what the plaintiffs obtained for a facility in Afghanistan is insurance or reinsurance and whether any fraud or negligence was involved, and those claims have now been stayed in the U.S. court.
-
May 23, 2023
2nd Circuit Upholds Ruling Against English Reinsurer In All-Sums Allocation Row
NEW YORK — In a May 22 ruling that represents its best guess as to what the United Kingdom Supreme Court would do, a Second Circuit U.S. Court of Appeals panel upheld a decision against an English facultative reinsurer over all-sums allocation of an environmental claims settlement.
-
May 19, 2023
Stipulated Dismissals Are Granted In Excess Collateral Reinsurance Lawsuit
MINNEAPOLIS — At the parties’ stipulation, a Minnesota federal court dismissed a cross-claim and a counterclaim in an interpleader suit over excess collateral in an insurance-reinsurance program.
-
May 17, 2023
8th Circuit Sets Oral Argument In Appeal Of Qui Tam Crop Insurance Case
ST. LOUIS — The Eighth Circuit U.S. Court of Appeals has scheduled oral argument for June 13 in a revival bid by relators who had stood to receive about $300,000 before the trial court granted the government’s post-trial motion and vacated judgment in the qui tam crop insurance case.
-
May 16, 2023
Amendment, Judgment Sought In Suit Over Coverage Of Sexual Abuse Case Settlements
SEATTLE —A foreign reinsurer on May 15 filed an opposition to an interlocal cooperative’s bid for leave to add allegations in a declaratory judgment case over reimbursement for defense and settlement of suits alleging sexual abuse; instead, the foreign reinsurer asks a Washington state federal court to render judgment on the pleadings.
-
May 16, 2023
Insurer Removes Suit Over Purported Reinsurance, Files Counterclaims
HONOLULU — After removing a dispute over a purported reinsurance policy to Hawaii federal court, an insurer has filed an answer with counterclaims, arguing that 23 historical claims were paid in full.
-
May 16, 2023
Insurer Does Not Oppose 1 Of 3 Stay Requests In Asbestos Liabilities Row
OMAHA, Neb. — After three defendants cited Pennsylvania liquidation proceedings in asking a Nebraska federal court for stays in a suit over the $157.2 million settlement National Indemnity Co. (NICO) reached with Montana regarding alleged asbestos exposures, NICO says in a May 15 filing that it does not oppose a stay against one of the defendants.
-
May 16, 2023
Consent Judgment Entered Against Brazilian Reinsurer In Suit Over 2020 False Claim
NEW YORK — Days after the U.S. Securities and Exchange Commission filed an enforcement action against a Brazilian reinsurance company over a false 2020 claim of substantial investment by Berkshire Hathaway Inc., a New York federal judge has entered a consent judgment containing a permanent injunction but no monetary penalty.
-
May 15, 2023
Panel: Insolvent Insurer’s Reinsurer Can’t Claim Attorney Fees As General Creditor
CHICAGO — An Illinois appellate court affirmed a lower court’s determination that an insolvent insurer’s reinsurer seeking payment of a judgment for unpaid premiums, attorney fees and arbitration interest had a claim of a general creditor, rather than one for costs and expenses of administration, finding that based on statutory language and case law, the trial court correctly determined the reinsurer’s priority level.
-
May 15, 2023
Parties Propose Trial Dates On Remaining Claims In Reinsurance Billings Suit
LOS ANGELES — In a May 12 joint statement in California federal court, parties in a reinsurance billings suit involving dozens of claims outline the remaining claims and disputes to be tried, estimating that a jury trial will take 10 days.
-
May 15, 2023
$185.2M Judgment Entered For Plans In ACA Reinsurance Row; 9 Similar Cases Refiled
WASHINGTON, D.C. — Noting that the government’s earlier objection was withdrawn, a U.S. Court of Federal Claims judge on May 12 entered partial judgment under which the government will pay a class of 357 self-insured, self-administered employee health and welfare benefit plans (SISAs) a combined $185,230,024.42 in a suit over the Transitional Reinsurance Program (TRP) of the Patient Protection and Affordable Care Act (ACA).
-
May 11, 2023
Parties Outline Discovery Dispute In Suit Against Reinsurer Over Settlement
WHITE PLAINS, N.Y. — Parties in a breach suit involving an environmental losses settlement have outlined a discovery dispute for a New York federal magistrate judge, with insurers filing a May 10 letter responding to arguments a reinsurer made regarding allocation modeling documents and records of its key case committee.
-
May 11, 2023
Reinsurer’s Direct Benefits Estoppel Argument Is Rejected Again In Texas Appeal
TYLER, Texas — Deciding as it did last year in “an almost identical” appeal filed by the same reinsurer, a Texas appellate panel on May 10 upheld a ruling that the reinsurer did not establish that direct benefits estoppel applies and, therefore, did not show that an arbitration provision in the reinsurance contract is enforceable against the insured.
-
May 11, 2023
SEC Files Enforcement Action Against Brazilian Reinsurer Over Alleged 2020 Fraud
NEW YORK — After filing an enforcement action against a former senior executive of a Brazilian reinsurance company over a false 2020 claim of substantial investment by Berkshire Hathaway Inc., the U.S. Securities and Exchange Commission filed a similar action in New York federal court against the reinsurer.
-
May 11, 2023
On Settlement Report, Judge Orders Dismissal Of Duties Spat Over Reinsurance Trust
RICHMOND, Va. — Saying she was advised that the lawsuit concerning a reinsurance trust for an insolvent insurer “has been settled,” a South Carolina federal judge ordered dismissal of the case, which was on remand from the Fourth Circuit U.S. Court of Appeals.
-
May 10, 2023
Pretrial Attachment Of Assets Granted In Suit Over Tax-Sharing Agreement
RALEIGH, N.C. — A North Carolina federal judge on May 9 granted an emergency motion by plaintiffs in a dispute over a tax-sharing agreement (TSA) for pretrial attachment of the defendant’s assets.
-
May 09, 2023
Citing Liquidation Order, Reinsurer Seeks Stay Of Claims In Liabilities Row
OMAHA, Neb. — Arguing that two abstention doctrines apply because of Pennsylvania liquidation proceedings, a reinsurer moved in Nebraska federal court to stay claims against it in a suit over the $157.2 million settlement National Indemnity Co. (NICO) reached with Montana regarding alleged asbestos exposures.
-
May 05, 2023
Receiver Who Sought Rehab Has Concluded That Reinsurer Should Be Liquidated Instead
WILMINGTON, Del. — The receiver for Scottish Re (U.S.) Inc. in Rehabilitation (SRUS) has concluded that SRUS should be liquidated instead of rehabilitated, saying in a letter to the Delaware Court of Chancery that he intends to move for an order of liquidation in about 45 days.
-
May 04, 2023
Jurisdictional Questions Posed In 11th Circuit Appeal Of Arbitration Order
ATLANTA — Reinsurers and retrocessionaires are challenging a decision ordering arbitration in their litigation over an alleged $28 million in damages to an Algerian power plant, and the 11th Circuit U.S. Court of Appeals has posed two questions, saying it might “lack jurisdiction over this appeal.”