NEW YORK — A pollution exclusion precludes coverage for an environmental damage claim with an insolvent insurer, the First Department New York Supreme Court Appellate Division affirmed June 22 (In re Midland Insurance Co.; ASARCO LLC, v. The Superintendent of Financial Services of the State of New York, in her capacity as liquidator of Midland Insurance Co., No. 41294/86, N.Y. Sup., App. Div., 1st Dept., 2017 N.Y. App. Div. LEXIS 5065).
WASHINGTON, D.C. — The Federal Circuit U.S. Court of Appeals on June 8 docketed an appeal of a ruling that parents of an injured child failed to show that the U.S. government breached a settlement agreement over medical malpractice claims by failing to guarantee payment under annuities when an insurance company became insolvent (Karen L. Shaw, individually and as guardian of the person of Richard Scott Shaw, an incompetent, and Raymond A. Shaw v. The United States, No. 17-2136, Fed. Cir.).
ST. PAUL, Minn. — In a dispute over payment on work done for an insolvent insurer’s liquidator, a law firm petitioned the Minnesota Supreme Court on June 5 to answer “when a contingency fee lawyer is terminated by the client, may the district court consider the contingency fee agreement as one of the factors in awarding quantum meruit relief to the discharged lawyer?” (Faricy Law Firm, P.A., v. API Inc., Asbestos Settlement Trust, No. A16-1539, Minn. Sup.).
ST. LOUIS — In a criminal fraud case, an Arkansas trial court correctly denied, based on a lack of authority, a request by an insolvent insurer’s owner to be released from any further obligations of restitution once payment of $300,000 was made to the insurer’s receiver, the Eighth Circuit U.S. Court of Appeals ruled June 15 (United States of America v. Frank Whitbeck, No. 16-1720, 8th Cir., 2017 U.S. App. LEXIS 10606).
ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on June 13 dismissed an appeal of a ruling that an insolvent insurer’s case against the government over its handling of the Patient Protection and Affordable Care Act (ACA) risk corridor and how it offset debts properly belongs before the U.S. Court of Federal Claims (Doug Ommen, in his capacity as liquidator of CoOpportunity Health Inc.; Dan Watkins, in his capacity as special deputy liquidator of CoOpportunity Health Inc. v. U.S. Department of Health and Human Services, et al., No. 17-1662, 8th Cir.).
HELENA, Mont. — A trial judge did not err in granting summary judgment to an insured employer against the Montana Insurance Guaranty Association (MIGA) based on the exclusivity provision of the Montana Workers’ Compensation Act (WCA), a majority of the Montana Supreme Court affirmed June 13 (Asurion Services LLC v. Montana Insurance Guaranty Association, No.16-0581, Mont. Sup., 2017 Mont. LEXIS 339).
NEW YORK — A reinsurer on June 2 filed a letter with a New York federal court opposing a request by the liquidator of The Home Insurance Co. to amend a complaint to assert additional claims for $362,787.84 in a dispute over reinsurance proceeds allegedly owed to the insurer’s estate (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., Trygvesta Forsikring A/S v. Cerberus Holding Company, LLC., No. 16-cv-04874, S.D. N.Y.).
HARRISBURG, Pa. — A Pennsylvania trial judge on June 7 granted a recommendation by the liquidator of Reliance Insurance Co. to approve 250 individual class (b) insurance guaranty associations (GAs) claims that were not previously submitted for approval for a total amount of $32,213,482.41 (In re: Reliance Insurance Co. in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).
WASHINGTON, D.C. — The government enticed insurers to the Patient Protection and Affordable Care Act (ACA) marketplace with promises to pay them under the risk-corridor program and then flip-flopped on the deal, leaving catastrophic losses and hardship in its wake, an insurer told a federal appeals court on May 22 (Land of Lincoln Mutual Health Insurance Co. v. The United States of America, No. 17-1224, Fed. Cir.).
COLUMBIA, S.C. — Liquidators’ Patient Protection and Affordable Care Act (ACA) risk-corridor suit on behalf of an insurer should be stayed to see if resolution of two other similar cases on appeal can speed resolution of the case, a federal judge held June 7 (Raymond G. Farmer, in his capacity as Liquidator of Consumers’ Choice Health Insurance Company, et al. v. The United States of America, No. 17-363, Fed. Clms., 2017 U.S. Claims LEXIS 630).
FRESNO, Calif. — A California federal magistrate judge on June 8 granted the voluntary dismissal of a coverage lawsuit between the Federal Deposit Insurance Corp., as assignee of certain claims by a failed bank, and an insolvent insurer’s receiver (Thomas T. Hawker, et al. v. John D. Doak, insurance commissioner as receiver for Red Rock Insurance Co. f/k/a BancInsure Inc., No. 12-1261 E.D. Calif., 2017 U.S. Dist. LEXIS 88319).
CHICAGO — An Illinois judge on May 4 approved a recommendation by the rehabilitator of two insolvent insurers concerning the rates per hour for retained attorney and paralegal services (People of the State of Illinois, ex rel., Jennifer Hammer, Director of the Illinois Department of Insurance v Public Service Insurance Co., an Illinois domestic stock insurance company, et al., No. 2017-CH-03790, Ill. Cir., Cook Co., Chanc. Div.).
COLUMBIA, S.C. — The South Carolina Court of Appeals on May 31 reversed the denial of reimbursement claims made by an insurer with the South Carolina Second Injury Fund for coverage provided for workers’ compensation claims (Arrowpoint Capital Corp./Arrowood Indemnity Co. v. South Carolina Second Injury Fund v. Yuasa –Exide Inc., Nos. 2014-002215, 2014-002214 & 2014-002212, S.C. App., 2017 S.C. App. Unpub. LEXIS 258).
BATON ROUGE, La. — A Louisiana appeals panel on June 2 reversed a judgment entered in favor of an insolvent insurer on a personal injury claim arising out of a vehicle accident involving an insured and his father; however, the panel affirmed judgment on the involuntary dismissal of property damage and bad faith claims (John Cook and Jason J. Scott v. U.S. Agencies Mgt. Services, et al., No. 2016 CA 0802, La. App., 1st Cir., 2017 La. App. Unpub. LEXIS 182).
CONCORD, N.H. — A New Hampshire justice on May 22 approved a $5 million settlement between an insolvent insurer’s liquidator and a manufacturer and its personal injury settlement trust with regard to asbestos bodily injury claims (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Sup., Merrimack Co.).
CONCORD, N.H. — A New Hampshire trial justice on May 22 approved a $10 million settlement between an insolvent insurer’s liquidator and a manufacturer with regard to asbestos claims (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Sup., Merrimack Co.).
LOS ANGELES — Following an appeal that saw a reversal of summary judgment on negligence claims, the Federal Deposit Insurance Corp., as receiver for a failed bank, and an insolvent insurer on May 30 submitted to a California federal court a joint stipulation asking for dismissal of a dispute over directors and officers liability coverage (Federal Deposit Insurance Corp., as receiver for Security Pacific Bank v. BancInsure Inc., No. 12-9882, C.D. Calif.).
CHICAGO — An Illinois federal judge on June 1 dismissed breach of contract and breach of the implied covenant of good faith and fair dealing claims brought by the rehabilitator of two insolvent insurers against a mortgage insurance reinsurer and a bank (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 Corp. v. AAMBG Reinsurance Inc., No. 16-cv-07477, N.D. Ill., 2017 U.S. Dist. LEXIS 84231).
WASHINGTON, D.C. — Looking to recoup a solvency loan issued to an insolvent insurer under the Patient Protection and Affordable Care Act (ACA), the insurer’s liquidators allege in their May 30 complaint in the U.S. Court of Federal Claims that the U.S. government improperly withheld $157 million in risk-sharing payments owed under the ACA (Doug Ommen, in his capacity as liquidator of CoOportunity Health Inc., and Dan Watkins, in his capacity as special deputy liquidator of CoOportunity Health Inc. v. The United States of America, No. 17-712, Fed. Clms.).
HARRISBURG, Pa. — The liquidator of Reliance Insurance Co. applied on May 25 for approval from a Pennsylvania court of a report and recommendation on administrative expenses by state insurance guaranty associations (GA) (In re: Reliance Insurance Co. in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).