FORT LAUDERDALE, Fla. — A federal magistrate judge on Jan. 15 denied without prejudice investors’ motion for order directing a trustee to offer investors an option to keep their interest upon wind-down in a Securities Exchange Commission lawsuit alleging that the defendants fraudulently sold investment interests in life insurance policies, also denying without prejudice an expedited motion for an order directing the trustee to include in the proposed amendments to the trust agreement all policies where 100% of the fractional interests elect to “keep” and survey the investors as to their interest in a “keep” option.
NEW YORK — In statements dated Sept. 24 and Nov. 22 but filed as part of the public case docket on Jan. 7, the joint provisional liquidators (JPLs) of Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) and other debtors argue in New York federal bankruptcy court that they are entitled to close to $1 million in attorney fees for work on a motion to compel that was necessitated by “egregious conduct.”
SAVANNAH, Ga. — A commercial auto insurer on Jan. 13 moved for a Georgia federal court to substitute a deceased defendant’s wife as a party in its lawsuit seeking a declaration that there is no coverage for the insured, its owners and an employee for an underlying $112,466.57 personal injury default judgment.
ATLANTA — The 11th Circuit U.S. Court of Appeals on Jan. 6 dismissed an investor’s appeal of a lower federal court’s ruling that asset purchase agreements (APAs) affirm rather than preclude a trustee's ability to sell life insurance policies retained by investors, finding that it lacks jurisdiction because the order that is being appealed is not a “final decision” and did not involve the refusal “to wind up [a] receivership.”
NEW YORK — A New York federal judge has scheduled jury selection for May 2 in an aiding and abetting lawsuit over the collapse of hedge funds, the court docket shows.
HARRISBURG, Pa. — Overruling exceptions filed by the statutory liquidator, a Pennsylvania court ruling en banc on Dec. 22 reaffirmed a panel decision denying authorization to allocate assets from insolvent insurers’ estates to pay policyholder claims for benefits that exceed applicable statutory guaranty association limits and accrue more than 30 days after the insurance policies were terminated by the liquidations.
NEW ORLEANS — Allowing asbestos defendants to amend their answers or defenses to allow for new defenses in light of their insurer’s insolvency would impermissibly disturb the progression of a case already delayed numerous times and ready for trial since January 2020, a federal judge said Dec. 14 in reversing a magistrate judge’s ruling and denying one insured’s motion to reopen discovery.
NEW YORK — A New York federal bankruptcy judge on Dec. 8 denied a request by the joint provisional liquidators (JPLs) of Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) and other debtors for an order approving the use, sale, transfer or other disposition of assets in the ordinary course of the debtors’ businesses.
HARTFORD, Conn. — A Connecticut appeals panel on Dec. 7 held that the Compensation Review Board did not err in affirming the workers' compensation commissioner for the Fourth District’s decision that the Connecticut Insurance Guaranty Association fulfilled its statutory duty regarding a claimant’s retroactive lump-sum cost of living adjustment (COLA) payment arising from a disability claim.
WILMINGTON, Del. — A Delaware resident on Nov. 19 sued the Delaware Insurance Guaranty Association (DIGA) in the Delaware Superior Court to recover underinsured motorist (UIM) benefits for her bodily injury and lost wage damages resulting from a December 2018 automobile accident, arguing that the defendant stands in the place of the now-insolvent insurer that issued the UIM insurance policy.
FORT MYERS, Fla. — A federal bankruptcy judge in Florida on Dec. 2 found that the creditor trustee of a now insolvent Florida title insurance company failed to satisfy his burden of proving that the company made asset transfers with an actual intent to hinder, delay or defraud its creditors, also rejecting the trustee’s successor liability and alter-ego claims.
WASHINGTON, D.C. — A federal judge on Nov. 30 held that the U.S. government cannot use an administrative offset to make an “end-run around” a state liquidation process, “particularly not where the government elected to participate in that process and had its claim decided,” finding that the Nevada commissioner of Insurance as receiver for the Nevada Health CO-OP (NHC) is entitled to judgment on all claims in her lawsuit alleging that the government improperly withheld payments under the Patient Protection and Affordable Care Act (ACA).
NEW ORLEANS — A federal judge in Louisiana on Nov. 29 issued a scheduling order indicating that an asbestos liability lawsuit involving a now insolvent insurer will proceed to a jury trial before him on Oct. 22, 2022.
KANSAS CITY, Kan. — An insurer that recently assumed an insolvent excess insurer’s responsibility for claims and defenses in an antitrust coverage dispute filed an opposition on Nov. 23 to Blue Cross Blue Shield of Kansas Inc.’s objection to a Kansas federal magistrate judge’s discovery order.
RICHMOND, Va. — The North Carolina Insurance Guaranty Association (NCIGA) on Nov. 24 asked the Fourth Circuit U.S. Court of Appeals to reverse a North Carolina federal court’s ruling that granted the secretary of Health and Human Services and federal agencies’ motion to dismiss its lawsuit challenging the reporting requirements under the federal Medicare Secondary Payer (MSP) statute, arguing that is beyond the government’s agency jurisdiction and not subject to MSP requirements due to its “unique status as a statutory entity.”
NEW YORK — Two groups of entities on Nov. 30 opposed a request by the joint provisional liquidators (JPLs) of Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) and other debtors for an order approving the use, sale, transfer or other disposition of assets in the ordinary course of the debtors’ businesses, arguing in part that the motion before a New York federal bankruptcy court lacks specificity.
CINCINNATI — A split Sixth Circuit U.S. Court of Appeals panel reversed a lower court’s judgment on a motion to dismiss a long-running case on Nov. 18, ruling that under claim preclusion, a final state court judgment bars the federal suit over asbestos coverage liability; however, the members all agreed that the appellate court is not bound by a Pennsylvania liquidation order that stayed all litigation against the appellant.
NEW YORK — An asbestos claims settlement allocation is “objectively reasonable” and a follow-the-settlements clause makes it binding on a reinsurer, an excess insurer argues in its Nov. 17 appellee brief, urging the Second Circuit U.S. Court of Appeals to uphold a lower court’s ruling in its favor.
AKRON, Ohio — Members of health insurance plans filed a class complaint in a federal Ohio court on Oct. 21, seeking a declaration that the plans “were and are illegal contracts” and a ruling that Liberty HealthShare Inc.’s CEOs or directors are personally liable upon finding Liberty an unauthorized and insolvent insurer under Virginia Code Annotated Section 38.2-215.
NEW YORK — The joint provisional liquidators (JPLs) of entities including Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) on Nov. 16 asked a New York federal bankruptcy court to enter an order approving the use, sale, transfer or other disposition of assets in the ordinary course of the debtors’ businesses.