NEW YORK — The First Department New York Appellate Division on June 4 upheld a lower court’s ruling lifting a stay of a medical malpractice lawsuit that had been stayed due to a liquidation order placed against one of the defendant’s insurers (Cynthia I. Caimares v. Aimee Erickson, et al., No. 20620/17E, N.Y. App. Div., 1st. Dept., 2019 N.Y. App. Div. LEXIS 4321).
NEW YORK — A reinsurer and the liquidator for Home Insurance Co. informed a New York federal judge on May 30 that they voluntarily dismiss a third-party action following the dismissal of the main action over proceeds allegedly owed to the insolvent insurer under three facultative reinsurance certificates (Roger A. Sevigny v. Trygvesta Forsikring A/S, Trygvesta Forsikring A/S v. Cerberus Holding Company LLC, No. 16-4874, S.D. N.Y.).
ST. LOUIS — A Missouri federal judge on June 3 held that he would abstain from hearing a dispute between the special deputy receiver (SDR) for three insolvent insurers and a preneed cemetery trust over whether a merchandise and services trust remains property of a receivership proceeding and will instead stay the case until resolution of a concurrent Texas state court receivership proceedings (Winner Road Properties LLC v. BMO Harris Bank, N.A. v. Jo Ann Howard & Associates, P.C., No. 16-1395, E.D. Mo., 2019 U.S. Dist. LEXIS 92546).
NEW YORK — Calling the allegations against it the “written equivalent of a Russian nesting doll,” an investment holdings company argues in a May 31 reply brief that a New York federal court should dismiss a second amended complaint filed by two hedge funds’ liquidators concerning the alleged massive fraud scheme that caused the hedge funds’ collapse (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).
NEW YORK — In response to a motion to dismiss a second amended complaint (SAC), two hedge funds’ liquidators argue in a May 29 brief to a New York federal court that an investment holdings company should not be permitted “to evade responsibility for the substantial assistance it provided” in an alleged massive fraud scheme that caused the hedge funds’ collapse (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).
CHICAGO — A reinsurer tells an Illinois federal court in a May 24 opposition that an insolvent insurer’s liquidator seeks to vacate or modify a $437,000 arbitration award for attorney fees “not because of the purported reason that the panel exceeded its authority in issuing the award, but because it does not agree with the panel’s interpretation of the parties’ contracts” (Catalina Holdings [Bermuda] Ltd. v. Jennifer Hammer, No. 18-5642, N.D. Ill.).
WASHINGTON, D.C. — Finding that the Rooker-Feldman doctrine is inapplicable to the case, the District of Columbia Circuit U.S. Court of Appeals on May 28 reversed the dismissal of a lawsuit filed by the sole shareholder of an insolvent health insurer against the District of Columbia and the insurer’s rehabilitator for their alleged unlawful acts (D.C. Healthcare Systems Inc. v. District of Columbia, et al., No. 17-7141, D.C. Cir., 2019 U.S. App. LEXIS 15698).
NEW ORLEANS — Citing an insurer’s receivership order and a permanent injunction, a Louisiana federal judge on May 24 stayed a negligence lawsuit arising out of a car accident for the duration of the insurer’s receivership (Walter Alexander Murcia, et al. v. Spirit Commercial Auto Risk Retention Group Inc., et al., No. 18-4938, E.D. La., 2019 U.S. Dist. LEXIS 87809).
SAN JUAN, Puerto Rico — A Puerto Rico federal judge on May 23 allowed entry of appearance of counsel hired by the Puerto Rico Guaranty Association of Miscellaneous Insurance to represent its insured in a personal injury lawsuit but declined to allow the entry of appearance of counsel for the guaranty association itself because it is not a party (Brenda Lee Maduro Colon v. Coca-Cola Puerto Rico Bottlers, No. 17- 01591. D. Puerto Rico, 2019 U.S. Dist. LEXIS 88209).
WASHINGTON, D.C. — The United States never grapples with the disastrous consequences and far-reaching impact a decision allowing the government to simply skip out on Patient Protection and Affordable Care Act (ACA) risk-corridor obligations, a pair of insurers tell the U.S. Supreme Court in reply briefs filed May 22 and May 24 (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.).
WILMINGTON, Del. — A Delaware federal judge on May 23 declined to reconsider an earlier ruling dismissing a conspiracy and unjust enrichment lawsuit filed by the founder of a now-insolvent insurer against individuals involved in the insurer’s liquidation proceeding because the founder failed to show any error (Jeffrey Cohen v. Jeffrey Miceli, et al., No. 17-1352, D. Del.).
DAYTONA BEACH, Fla. — In a single-page per curiam opinion, a Florida appeals panel on May 21 upheld the denial of attorney fees to insureds against the Florida Insurance Guaranty Association (FIGA) in their sinkhole coverage dispute despite the insureds’ constitutional rights violation argument (Dieubon Pierre, et al. v. Florida Insurance Guaranty Association, No. 5D18-1734, Fla. App., 5th Dist., 2019 Fla. App. LEXIS 7861).
NEW YORK — A former managing director for investment companies on May 20 responded to insurers’ third-party allegations of fraudulent inducement and fraud and violations of the Racketeer Influenced and Corrupt Organizations Act in a receiver’s New York federal court lawsuit, seeking redress for damages arising out of a “massive fraudulent scheme” involving Platinum Partners Credit Opportunities Master Fund LP (PPCO funds) (Melanie L. Cyganowski, as equity receiver for Platinum Partners Credit Opportunities Master Fund LP, et al. v. Beechwood Re Ltd., et al. & Washington National Insurance Co., et al. v. Moshe M. Feuer, et al., No. 18-12018, S.D. N.Y.).
LAS VEGAS — A Nevada court on April 12 appointed the state’s insurance commissioner as permanent receiver of Lancet Indemnity Risk Retention Group Inc. and issued a permanent injunction against the insurer (Nevada v. Lancet Indemnity Risk Retention Group Inc., No. A-19-791409-C, Nev. Dist., Clark Co., 8th Jud.).
ANDERSON, S.C. — Two defendants argue in a May 20 motion to a South Carolina federal court that a special deputy receiver’s claim under the Racketeer Influenced and Corrupt Organization (RICO) Act fails because they can show that they had no idea that letters of credit were fraudulent and that they did not orchestrate any scheme to defraud a multiple-employer self-insured health plan (Michael J. FitzGibbons, et al. v. Alton Atkinson, et al., No. 17-2092, D. S.C.).
NEW YORK — A reinsurance company in a May 16 petition asks a New York federal bankruptcy court to recognize its liquidation proceedings pending in a Cayman Islands court and to place a stay on several securities fraud cases in which it is being accused of operating as an alter ego of a hedge fund (In re Beechwood Re, Chapter 15, No. 19-11560, S.D. N.Y. Bkcy.).
WILMINGTON, Del. — A Delaware vice chancellor granted summary judgment to a bank on May 15 to the extent that an insolvent insurer’s receiver relies on affirmative defenses for unclean
HACKENSACK, N.J. — On May 14, a woman seeks uninsured motorist (UIM) bodily injury benefits from the New Jersey Property Liability Insurance Guaranty Association (NJPLIGA) for injuries sustained when an unidentified driver and vehicle struck her (Andrea Diaz v. New Jersey Property Liability Insurance Guaranty Association, et al., No. BER-L-003726-19, N.J. Super., Bergen Co.).
NEW YORK — An Irish reinsurer of life insurance policies on May 7 sought to have a New York federal bankruptcy court recognize a foreign main liquidation proceeding concerning an alleged $1 billion deficit (In re Ballantyne Re Plc, Chapter 15, No. 19-11490, S.D. N.Y. Bkcy.).
MIAMI — Defendants portrayed health insurance products as comprehensive plans compliant with the Patient Protection and Affordable Care Act (ACA) when in reality they offered little to no coverage, a federal judge in Florida held May 14 in granting a motion for injunction, asset freeze and continued receivership (Federal Trade Commission v. Simple Health Plans LLC, et al., No. 18-62593, S.D. Fla.).