NEW YORK — Liquidators for two hedge funds filed a conspiracy and fraud complaint on Nov. 21 in a New York federal court in connection “with one of the most spectacular hedge fund collapses in recent memory” in which funds with an alleged net asset value (NAV) of nearly $1 billion turned out to not only be insolvent but also to have liabilities between $400 million and $800 million (Martin Trott, et al. v. Platinum Management (NY) LLC, et al., No. 18-10936, S.D. N.Y.).
NEW YORK — In a dispute over the alleged mismanagement and misuse of $320 million, a New York federal judge on Dec. 7 dismissed in part a run-off insurer’s tort and quasi-contract claims against a reinsurer and its entities but allowed the insurer to amend its complaint to assert additional allegations for some of the claims (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658, S.D. N.Y., 2018 U.S. Dist. LEXIS 206536).
WHITE PLAINS, N.Y. — A New York justice on Nov. 21 asked parties to show cause why he should not appoint a referee to hear disputes regarding the claim determinations made in the liquidation proceeding of Touchstone Health HMO Inc. (In the matter of the liquidation of Touchstone Health HMO Inc., No. 54964/2018, N.Y. Sup., Westchester Co.).
NEW YORK — A New York justice on Nov. 26 terminated and closed the ancillary receivership proceeding for Legion Insurance Co. (In the matter of the ancillary receivership of Legion Insurance Co., No. 40267/03, N.Y. Sup., New York Co.).
NEW YORK — A New York justice on Nov. 14 terminated and closed the liquidation proceeding for Drivers Insurance Co. (In the matter of the liquidation of Drivers Insurance Co., No. 452965/15, N.Y. Sup., New York Co.).
NEW YORK — In a dispute over reinsurance payments for construction site injuries, a New York federal judge on Dec. 6 said that an insolvent workers’ compensation insurer and British underwriters agreed to settle following a ruling by the Second Circuit U.S. Court of Appeals on an order vacating $1.5 million award (Certain Underwriting Members of Lloyds of London, et al. v. Insurance Company of the Americas, Nos. 16-323 & 16-374, S.D. N.Y.).
WILMINGTON, Del. — A Delaware vice chancellor on Dec. 6 denied a fourth attempt by the founder, now in prison for fraud, of an insurer, now in liquidation, from intervening to challenge findings that the insurer is insolvent (In the matter of the liquidation of Indemnity Insurance Corp., RRG, No. 8601-VCZ, Del. Chanc., 2018 Del. Ch. LEXIS 556).
OKLAHOMA CITY — In an administrative closing order, an Oklahoma federal judge on Dec. 3 noted that reinsurance intermediaries and the receiver for an insolvent insurer have reached a settlement as to the receiver’s lawsuit alleging negligence in reinsurance services provided to the insurer (Oklahoma, et al. v. Axiom Re LP, et al., No. 17-0484, W.D. Okla.).
MERCED, Calif. — As a result of the fires in Paradise, Calif., the California insurance commissioner on Nov. 30 requested to be appointed liquidator for Merced Property & Casualty Co. because the insurer projects to be insolvent from those fires losses (Insurance Commissioner of the state of California v. Merced Property & Casualty Co., No. N/a, Calif. Super., Merced Co.).
NEW YORK — A New York federal judge on Nov. 28 gave an insolvent insurer time to respond to the New York superintendent of financial services and the New York State Department of Financial Services’ (DFS) pre-motion letter in a case seeking redress for violation of the insurer’s equal protection rights (Park Insurance Co. v. Maria T. Vullo, et al., No. 18-09628, S.D. N.Y.).
NEW YORK — A reinsurer and its entities argue in a Nov. 5 brief that a New York federal court should dismiss a run-off insurer’s tort and quasi-contract claims because the case over the alleged mismanagement and misuse of $320 million is one for breach of contract (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-06658, S.D. N.Y.).
ST. LOUIS — A Missouri federal judge on Nov. 21 decided 13 motions to exclude evidence and expert testimony in a case among banks, a special deputy receiver and state insurance guaranty associations over the mishandling of funds belonging to insolvent funeral insurers (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo., 2018 U.S. Dist. LEXIS 198240).
CHICAGO — The Seventh Circuit U.S. Court of Appeals on Nov. 21 denied a petition by the U.S. Department of Health and Human Services (HHS) asking for rehearing for limited purposes of removing two sentences from a decision finding that a federal court erred in remanding the HHS’s dispute with an insolvent insurer’s liquidator over the government’s setoff of its own debt payments by first paying down the insolvent insurer’s debt (Jennifer Hammer v. U.S. Department of Health and Human Services, No. 18-2523, 7th Cir., 2018 U.S. App. LEXIS 33002).
ST. LOUIS — On Nov. 20, a Missouri federal judge ruled on five summary judgment motions filed by a special deputy receiver, state insurance guaranty associations and banks on issues in a dispute over the mishandling of funds belonging to insolvent funeral insurers (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo., 2018 U.S. Dist. LEXIS 197542).
CHICAGO — A rehabilitator for two insolvent insurers on Nov. 5 responded to an objection made in an Illinois court to her amended plan, which involves the consummation of a stock purchase agreement (SPA) (In the matter of the rehabilitation of Public Service Insurance Co. and Public Service Mutual Holding Co., No. 17 CH 3790, Ill. Cir., Cook Co.).
SAN FRANCISCO —Secretary of Health and Human Services Alex Azar II argues in a Nov. 16 brief to the Ninth Circuit U.S. Court of Appeals that the California Insurance Guarantee Association (CIGA), as a primary plan, is responsible for making payment to insureds of workers’ compensation plans that become insolvent (California Insurance Guarantee Association v. Alex Azar II, et al., Nos. 17-56526 & 17-56528, 9th Cir.).
ST. LOUIS — The special deputy receiver for three insolvent insurers argues in a Nov. 19 reply to a Missouri federal court that responses to its motion to abstain or dismiss a cross-claim in a breach of fiduciary duty lawsuit ignore the effect of a liquidation order (Winner Road Properties LLC v. BMO Harris Bank, N.A. v. Jo Ann Howard & Associates, P.C., No. 16-1395, E.D. Mo.).
GREENSBORO, N.C. — A North Carolina federal judge on Nov. 16 refused to dismiss a breach of contract lawsuit against an insurer regarding the return of collateral funds, rejecting the insurer’s argument that two defendants previously dismissed from the lawsuit were necessary and indispensable parties (Debbie’s Staffing Services Inc. v. Highpoint Risk Services LLC, et al., No. 17-657, M.D. N.C., 2018 U.S. Dist. LEXIS 196160).
AUSTIN, Texas — A special deputy receiver (SDR) for Access Insurance Co. provided a report to a Texas trial court on a status conference held Nov. 5 detailing, among other matters, the termination of a transition services agreement, continued reinsurance reporting and the preparation of an application to make first early access distribution (The Texas Department of Insurance v. Access Insurance Co., No. D-1-GN-18-001285, Texas Dist., Travis Co., 261st Jud.).
LOS ANGELES — Having previously stayed a breach of contract case against an insolvent insurer pending resolution of the insurer’s liquidation, a California federal judge on Nov. 2 discharged an order to show cause and ordered the insolvent insurer to file another status report in six months (Yancy Alvarez, et al. v. Access General Insurance Co., No. 18-336, C.D. Calif.).