WASHINGTON, D.C. — A U.S. Court of Federal Claims judge said on Aug. 12 that a claims administrator may distribute 95% of funds recently recovered by two subclasses of insolvent insurers in a lawsuit seeking a declaratory judgment that the U.S. government owes the insurers millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program, indicating that the remaining 5% will remain in escrow until resolution of class counsel’s motions for attorney fees.
NEW YORK — The Second Circuit U.S. Court of Appeals on Aug. 12 lifted a stay of the briefing schedule in a reinsurer’s appeal of a $35 million judgment entered in favor of an excess insurer in an asbestos coverage dispute, ordering the reinsurer to file its principal brief and the joint appendix by Aug. 20.
COLUMBIA, S.C. — A federal judge in South Carolina on July 29 remanded the South Carolina Department of Insurance’s lawsuit seeking declaratory and injunctive relief against an insolvent long-term care insurer and its rehabilitator, finding that, at bottom, the federal court lacks subject matter jurisdiction.
FORT LAUDERDALE, Fla. — A federal judge in Florida on July 30 affirmed and adopted a magistrate judge’s report recommending that a trustee’s motion to modify a trust agreement be denied in a Securities Exchange Commission lawsuit alleging fraudulent selling of investment interests in life insurance policies.
WASHINGTON, D.C. — The U.S. government on Aug. 2 filed a petition for a panel rehearing of the Federal Circuit U.S. Court of Appeals’ May 17 rejection of its appeal seeking to vacate a $24.5 million award for an insolvent insurer’s liquidator, challenging the court’s finding that it does not have a right to offset Patient Protection and Affordable Care Act (ACA) obligations during the insolvency proceeding and that the U.S. Court of Federal Claims’ money judgment was proper.
RALEIGH, N.C. — A federal judge in North Carolina on July 20 denied a motion by a health insurer in rehabilitation to dismiss bad faith and breach of fiduciary duty counterclaims brought by a borrower and pledgors in their dispute over an alleged default under a loan agreement.
RALEIGH, N.C. — A federal judge in North Carolina on July 20 denied a borrower and its agent’s motions to dismiss a complaint filed by three insurers in rehabilitation seeking to recover $14.5 million from the borrower under a loan agreement for its alleged breach of contract in failing to make a first interest payment.
RALEIGH, N.C. — A federal judge in North Carolina on July 20 refused to dismiss a lawsuit brought against two wealth management firms with interests in a loan agreement by two insurers in rehabilitation seeking $12.5 million under the loan agreement.
RALEIGH, N.C. — A federal judge in North Carolina on July 20 denied an insurer in rehabilitation’s motion to dismiss bad faith and breach of fiduciary counterclaims brought by three borrowers that are named in separate suits over their alleged breach of loan agreements, calling the motion “meritless."
PASADENA, Calif. — In their July 26 appellants’ brief before the Ninth Circuit U.S. Court of Appeals challenging the dismissal of their allegations that the California insurance commissioner and his deputies violated their constitutional rights and acted in bad faith by filing a conservatorship against a workers’ compensation insurer, a different insurer and its subsidiary argue that the doctrine of prior exclusive jurisdiction and abstention under Younger v. Harris do not apply.
SAN FRANCISCO — Expediting an appeal contesting a California federal judge’s dismissal of allegations that state regulators abused their authority by actions including obtaining a conservatorship against a workers’ compensation insurance carrier is not warranted and would be prejudicial, the regulators tell the Ninth Circuit U.S. Court of Appeals in their July 27 opposition to a motion to expedite.
ATLANTA — American Property Casualty Insurance Association on July 21 filed an amicus curiae brief in support of Certain Underwriters at Lloyd’s London in a coronavirus coverage suit, arguing to the 11th Circuit U.S. Court of Appeals that commercial property insurance policies “do not—and were never intended to—provide coverage for economic losses untethered to physical loss or physical damage.”
SAN JUAN, Puerto Rico — A federal judge in Puerto Rico on July 20 granted Puerto Rico Miscellaneous Insurance Guaranty Association’s motion to dismiss a lawsuit seeking liability for damages arising from a slip-and-fall injury that allegedly occurred at the insured’s premises, finding that the court lacks subject matter jurisdiction and the plaintiff is barred from suing the association because this lawsuit was initiated after the liquidation order was issued for the insured’s now-insolvent insurer.
WASHINGTON, D.C. — Class counsel on July 20 moved for the U.S. Court of Federal Claims to approve their attorney fee request of 5 percent of a $45,417,643.02 judgment for a subclass that consists of one insolvent insurer in insolvent insurers’ lawsuit seeking a declaratory judgment that the U.S. government owes them millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program.
NEWARK, N.J. — A federal judge in New Jersey on July 13 granted in part and denied in part the city of Newark and its public safety director’s motion to dismiss and police officers’ motion for summary judgment in a personal injury lawsuit in which New Jersey Property-Liability Insurance Guaranty Association (NPLIGA) filed a cross-claim seeking contribution from the other defendants for damages caused by a police car chase that led to a collision.
CHICAGO — Insurance brokers on July 15 moved for a federal court in Illinois to bifurcate discovery in a lawsuit alleging that they breached their duty of care because they knew or should have known that a multiple employer welfare arrangement (MEWA) was not in compliance with its structural requirements and was not financially sound.
FORT LAUDERDALE, Fla. — A federal magistrate judge in Florida on July 18 denied a motion by investors in the Mutual Benefits Keep Policy Trust seeking pre-approval of any future payments that a trustee makes to himself or his firm until the trustee’s “enhanced oversight” of the trust’s servicer “can be investigated and fully understood” in a Securities Exchange Commission lawsuit alleging fraudulent selling of investment interests in life insurance policies.
DALLAS — Insureds’ assignment to medical providers included both rights to benefits under the Employee Retirement Income Security Act and legal action and transferred to the trustee upon the providers’ bankruptcy, a federal judge in Texas said July 19 in adopting a magistrate judge’s report recommending denial of a motion to dismiss.
PHILADELPHIA — The Third Circuit U.S Court of Appeals on July 16 granted a motion for partial remand brought by the Chapter 7 trustee for an insurer and its subsidiaries in his appeal of a lower federal court’s reversal of a bankruptcy court’s order granting his objection to the Internal Revenue Service’s claim seeking administrative priority for tax obligations arising in the year of a bankruptcy filing, remanding to the federal court with instruction to remand to the bankruptcy court for approval of a settlement.
SAN FRANCISCO — An appeal contesting a federal judge in California’s dismissal of allegations that state regulators abused their authority by actions including obtaining a conservatorship against a workers’ compensation insurance carrier must be hastened or the appeal will not be completed before the conservation is lifted, the appellant told the Ninth Circuit U.S. Court of Appeals in a July 19 motion to expedite.