SHREVEPORT, La. — In a lawsuit against a propane gas truck driver and his insolvent insurer, a Louisiana appeals panel on May 17 affirmed partial summary judgment to a postal worker on the issue of liability because the truck driver was 100 percent at fault for a collision with the postal worker, who was free from any comparative fault (Raymond Doyle Chanler Jr. and Pamela Turner Chanler v. Jamestown Insurance Co., et al., No. 51,320-CA, La. App., 2nd Cir., 2017 La. App. LEXIS 858).
WASHINGTON, D.C. — 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, a Federal Claims judge ruled March 31, granting summary judgment to the government (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. 14-783C, Fed. Clms., 2017 U.S. Claims LEXIS 258).
WASHINGTON, D.C. — The government attempts to muddle how its obligations form in attempting to dispel a case alleging underpayment under the Patient Protection and Affordable Care Act (ACA) risk-corridor program, an insurer told a federal judge May 15 (Health Republic Insurance Co. v. The United States of America, No. 16-259, Fed. Clms.).
WASHINGTON, D.C. — The Patient Protection and Affordable Care Act (ACA) does not entitle insurance companies to billions of dollars in taxpayer funds, the U.S. government argues in an April 12 brief in a federal claims court, because Section 1342 of the ACA neither provides an appropriation nor authorizes the use of appropriated funds (Health Republic Insurance Co. v. The United States of America, No. 16-259, Fed. Clms.).
LAKELAND, Fla. — On remand, a trial judge should enter a corrected judgment to show that an insured must contract for repairs within damages awarded by a jury and that the Florida Insurance Guaranty Association (FIGA) is required to pay actual repair costs to the contractors up to the combined statutory cap, a Florida appeals panel ruled May 12 (Maria Pupo v. Florida Insurance Guaranty Association, No. 2D15-3901, Fla. App., 2nd Dist., 2017 Fla. App. LEXIS 6775).
NEW YORK — In a dispute over reinsurance proceeds allegedly owed to the estate of The Home Insurance Co., the liquidator on May 11 requested a pre-motion conference in a New York federal court to address an amendment to his complaint against a reinsurer to assert an additional claim of $362,787.84 (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.).
ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on March 28 dismissed an interlocutory appeal by insurers’ liquidators challenging the denial of a preliminary injunction because a judge’s finding of lack of jurisdiction over the suit involving the proper handling of Patient Protection and Affordable Care Act (ACA) assets moots the appeal (Nick Gerhart, et al. v. United States Department of Health and Human Services, et al., No. 16-3477, 8th Cir.).
PHILADELPHIA — In dismissing a civil action brought by an insolvent insurer’s owner against state regulators, a Pennsylvania federal judge found April 5 that the owner has the opportunity to present his claims in a Maryland district court or appellate court and fails to demonstrate that he is entitled to relief “to prevent a grave miscarriage of justice” (Jeffrey Cohen, personally and as sole shareholder of RB Entertainment Ventures LLC v. John Tinsley and Regulatory Insurance Services Inc., No. 16-mc-210, E.D. Pa., 2017 U.S. Dist. LEXIS 51755).
TRENTON, N.J. — IFA Insurance Co. was ordered into liquidation by a New Jersey trial justice on May 4, and the state’s insurance commissioner was appointed as liquidator of the auto insurer (Richard J. Badolato, commissioner of the Department of Banking and Insurance of New Jersey v. IFA Insurance Co., No. MER-C-20-17, N.J. Super., Mercer Co.).
CHICAGO — A mortgage insurance reinsurer argues in a May 5 reply brief to an Illinois federal court that the rehabilitator of two insolvent insurers failed to assert sufficient allegations to support breach of contract and breach of the implied covenant of good faith and fair dealing claims (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.).
RICHMOND, Va. — An insured insulation company filed a notice May 2 to the Fourth Circuit U.S. Court of Appeals appealing a partial summary judgment order entered in favor of a number of solvent and insolvent insurers involved in an asbestos coverage dispute after it was determined that the insured’s claims regarding the exhaustion of the insurers’ policies were not timely filed (General Insurance Company of America and The Walter E. Campbell Co. Inc. v. The Continental Insurance Co., et al., No. 17-1585, 4th Cir.).
ST. PAUL, Minn. — A trial court erred by releasing an asbestos settlement trust of any duty to pay a law firm for work on a claim filed with an insolvent insurer despite finding that the firm performed some uncompensated work on that claim for which a promise to pay was implied, a Minnesota panel held May 8 (Faricy Law Firm, P.A., v. API Inc., Asbestos Settlement Trust, No. A16-1539, Minn. App., 2017 Minn. App. Unpub. LEXIS 421).
BOSTON — Interest for an employee’s workers’ compensation claim against an insolvent insurer starts from the date the Department of Industrial Accidents received notice of the claim resulting in the award of benefits, the Massachusetts Appeals Court affirmed May 8 (Jeffrey Comeau v. Enterprise Electronics Inc. and Eastern Casualty Insurance Co. in liquidation c/o Massachusetts Insurers Insolvency Fund, No. 2016-P-0134, Mass. App., 2017 Mass. App. LEXIS 54).
OKLAHOMA CITY — An Oklahoma judge on May 5 approved the state insurance commissioner’s recommendation, denying claims valued at $227,891 against Pride National Insurance Co., which is in liquidation (State of Oklahoma, ex rel. John D. Doak, insurance commissioner v. Pride National Insurance Co., No. CJ-2013-1448, Okla. Dist., Okla. Co.).
LOS ANGELES — California Insurance Guarantee Association (CIGA) is entitled to an order vacating and setting aside three reimbursement demands of $119,122 made under workers’ compensation insurance policies, a California federal judge ruled May 3 (California Insurance Guarantee Association v. Thomas E. Price, Secretary of Health and Human Services, et al., No. 15-cv-01113, C.D. Calif., 2017 U.S. Dist. LEXIS 67589).
CONCORD, N.H. — Insureds should prepare an interlocutory transfer of ruling to address whether they may bring a limited fund class action against the excess funds the New Hampshire insurance commissioner seeks to tender in the winding down of the state’s risk-sharing plan for medical malpractice insurance, a New Hampshire trial justice ordered May 2 (Georgia A. Tuttle, M.D., et al. v. New Hampshire Medical Malpractice Joint Underwriting Association and In the Matter of the Winding Down of the New Hampshire Medical Malpractice Joint Underwriting Association, No. 2015-347, N.H. Super., Merrimack Co., 2017 N.H. Super. LEXIS 10).
CHICAGO — The rehabilitator of two insolvent insurers argues in an April 21 brief in an Illinois federal court that there are sufficient allegations to support breach of contract and breach of the implied covenant of good faith and fair dealing claims against a mortgage insurance reinsurer (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.).
WASHINGTON, D.C. — The Patient Protection and Affordable Care Act (ACA) risk corridors are not now and were never intended to be an unlimited source of funds for covering insurers’ losses, as the text and history of the law make clear, the United States told a federal appeals court on April 24 (Land of Lincoln Mutual Health Insurance Co. v. The United States of America, No. 17-1224, Fed. Cir.).
NEW YORK — Claimants and parties interested in the liquidation of Health Republic Insurance of New York Corp. (HRINY) should show cause for objections to the appointments of referees for the review of liquidation estate claim appeals, a New York trial justice ordered April 14 (In the matter of the liquidation of Health Republic Insurance of New York Corp., No. 450500/2016, N.Y. Sup., New York Co.).
CHICAGO — In declaring a $69,611.07 judgment against a taxi driver satisfied, a trial judge erred in finding that the taxi’s occupant had a claim under his insurance policy’s uninsured motorist provision when the driver’s insurer became insolvent, an Illinois appeals panel held March 27, reversing and remanding for further proceedings (Roger Knouse v. Rejat Mohamednur, et al., No. 1-16-1856, Ill. App., 1st Dist., 1st Div., 2017 Ill. App. LEXIS 175).