MADISON, Wis. — A Wisconsin trial judge on May 2 ordered Northwestern National Insurance Company of Milwaukee, Wisconsin (NNIC) into liquidation and named the state’s insurance commissioner as liquidator (In the matter of the liquidation of Northwestern National Insurance Company of Milwaukee, Wisconsin, No. 2019CV001209, Wis. Cir., Dane Co.).
PATERSON, N.J. — A New Jersey resident seeks damages in a June 24 complaint filed in a state court against the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA) for injuries sustained while riding a bicycle (Moises Gonzalez v. New Jersey Property-Liability Insurance Guaranty Association, et al., No. PAS-L-001970-19, N.J. Super., Passaic Co.).
BROOKLYN, N.Y. — New York and Pennsylvania law state that solvent insurers cannot seek subrogation from an estate’s insolvent insurer to collect payments made to their own insureds for fire damage, a New York justice ruled May 17 (Tara McPherson, et al. v. Cross County Savings Bank, et al., No. 506746/13, N.Y. Sup., Kings Co., 2019 N.Y. Misc. LEXIS 2829).
SAN JUAN, Puerto Rico — An insurer asks in a June 20 motion that a Puerto Rico federal judge issue a 90-day stay of its lawsuit against various reinsurers regarding losses from two hurricanes in light of the recent rehabilitation proceedings initiated against the insurer (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).
NEW YORK — In a 65-page ruling, a New York federal judge on June 21 disposed of a second round of motions to dismiss a second amended complaint (SAC) brought by two hedge funds’ liquidators with regard to allegations in connection “with one of the most spectacular hedge fund collapses” (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y., 2019 U.S. Dist. LEXIS 104562).
LOS ANGELES — A California federal judge on June 25 dismissed a breach of contract case because the insureds failed to show why the case should not be handled in the liquidation proceeding for their insurer (Yancy Alvarez, et al. v. Access General Insurance Co., No. 18-336, C.D. Calif., 2019 U.S. Dist. LEXIS 106226).
NEW YORK — A run-off insurer argues in a June 21 opposition filed in New York federal court that affiliates of a failed Ponzi scheme strain the language of investment management agreements (IMAs) to support their motion for reconsideration of a ruling on a counterclaim for advancement of expenses (In re: Platinum-Beechwood Litigation; Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658, and David Levy v. Senior Health Insurance Company of Pennsylvania, No. 19-3211, S.D. N.Y., 2019 U.S. Dist. LEXIS 81271).
COLUMBIA, S.C. — In a case over a bank’s alleged breach of duties as trustee of a reinsurance trust for an insolvent insurer, a South Carolina federal judge on June 21 excluded evidence related to government investigations but refused to bar evidence concerning bank secrecy act/anti-money laundering compliance (BSA/AML) training (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C., 2019 U.S. Dist. LEXIS 103923).
WASHINGTON, D.C. — The U.S. Supreme Court on June 24 granted certification to health insurers to decide whether the United States evaded its statutory promise to pay them for losses when the government blocked $12 billion in funding under the Patient Protection and Affordable Care Act (ACA) risk-corridor program (Land of Lincoln Mutual Health Insurance Co. v. United States, No. 18-1038, Moda Health Plan Inc., et al. v. United States, No. 18-1028, Maine Community Health Options v. United States, No. 18-1023, U.S. Sup.).
CONCORD, N.H. — A New Hampshire judge on June 3 approved a $9.5 million settlement between the liquidator of The Home Insurance Co. and one of its insureds regarding alleged liabilities for asbestos bodily injury and environmental exposures (In the matter of the liquidation of The Home Insurance Co., No. 2003-EQ-0106, N.H. Super., Merrimack Co.).
SALT LAKE CITY — Addressing the factors in State Farm Fire & Cas. Co. v. Mhoon, 31 F.3d 979 (10th Cir. 1994), a Utah federal judge on June 3 chose to dismiss a declaratory judgment action, which alleged that an assessment made by a health maintenance organization’s (HMO) liquidator against another HMO is preempted by federal Medicare law (Molina Healthcare of Utah Inc. v. Todd E. Kiser, No. 19-00025, D. Utah, 2019 U.S. Dist. LEXIS 93299).
NEW YORK — In seven separate motions, third-party defendants on June 14 asked a New York federal court to dismiss a runoff insurer’s third-party complaint alleging aiding-and-abetting fraud and breach of fiduciary duty in a “massive fraudulent scheme” for failing to make particularized allegations against them (Melanie L. Cyganowski v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).
ANDERSON, S.C. — An insurer’s special deputy receiver in June 14 motions argues that two defendants played a role in an alleged scheme to defraud a multiple-employer self-insured health plan with fraudulent letters of credit (LOC) and, thus, a South Carolina federal court should not dismiss the receiver’s claim under the Racketeer Influenced and Corrupt Organization Act against them (Michael J. FitzGibbons, et al. v. Alton Atkinson, et al., No. 17-2092, D. S.C.).
FRANKFORT, Ky. — In a case over statutory and regulatory violations against state agencies, the Kentucky Supreme Court on June 5 denied discretionary review of a lower court’s ruling that an insolvent self-insured employer’s president was required to request a refund of security with the commissioner for the Kentucky Department of Workers’ Claims (James R. Martin v. Kentucky Individual Self-Insurance Guaranty Fund, et al., No. 2018-SC-000552-D, Ky. Sup., 2019 Ky. LEXIS 258).
CHICAGO — An insolvent insurer’s liquidator argues in a June 7 reply filed in Illinois federal court that a panel exceeded its authority when it issued attorney fees in its $437,000 arbitration award to a reinsurer (Catalina Holdings [Bermuda] Ltd. v. Jennifer Hammer, No. 18-5642, N.D. Ill.).
EL PASO, Texas — A Texas appeals panel on June 12 upheld the entry of summary judgment on negligence claims against insurance agents regarding their procurement of a liquor liability policy from an insolvent insurer and the eventual lack of coverage for two underlying Dram Sham Act lawsuits against a bar establishment (R&M Mixed Beverage Consultants Inc. v. Safe Harbor Benefits Inc., et al., No. 08-17-00054-CV, Texas App., 8th Dist., 2019 Tex. App. LEXIS 4840).
LOS ANGELES — A California federal judge on June 12 ordered insureds to show cause why their breach of contract case against an insolvent insurer should not be dismissed and, instead, handled in the insurer’s liquidation (Yancy Alvarez, et al. v. Access General Insurance Co., No. 18-336, C.D. Calif., 2019 U.S. Dist. LEXIS 98817).
NEW YORK — A New York federal judge on June 10 stayed a lawsuit by the Securities and Exchange Commission that alleges that two individuals “perpetrated multiple schemes to defraud their advisory clients, which were insurance companies and reinsurance trusts” (Securities and Exchange Commission v. Alexander C. Burns, et al., No. 18-09477, S.D. N.Y.).
SAN FRANCISCO — In their dispute over who is responsible for payment to insureds of workers’ compensation plans that become insolvent, Secretary of Health and Human Services Alex Azar II and the California Insurance Guarantee Association (CIGA) in a May 25 brief tell the Ninth Circuit U.S. Court of Appeals that a lower court’s judgment is final and appealable because the judgment resolved all their respective claims, rights and liabilities (California Insurance Guarantee Association v. Alex Azar II, et al., Nos. 17-56526 & 17-56528, 9th Cir.).
WILMINGTON, Del. — Two limited liability companies and liquidators for one of the companies filed a 101-page complaint in a Delaware state court on June 7, alleging breach of fiduciary duty with regard to transactions involving reinsurance agreements (Principal Growth Strategies LLC, et al. v. AGH Parent LLC, et al., No. 2019-0431, Del. Chan.).