OKLAHOMA CITY — BancInsure Inc.’s receiver tells an Oklahoma federal court in a Nov. 4 brief that, as a contracting party under a directors and officers (D&O) insurance policy, he has standing to seek a declaration of rights under the policy, including those belonging to third-party beneficiaries (Glen Mulready v. Westchester Fire Insurance Company, No. 20-782, W.D. Okla.).
BURLINGTON, Vt. — The liquidator for Global Hawk Insurance Company Risk Retention Group filed a complaint on Oct. 30 in Vermont federal court alleging a Racketeer Influenced and Corrupt Organizations Act scheme to defraud the insurer and policyholders “through misappropriation of its assets and misrepresentation of its financial condition so it could continue in business for their benefit” (Michael S. Pieciak v. Jasbir S. Thandi, et al., No. 20-173, D. Vt.).
WASHINGTON, D.C. — The government in an Oct. 30 amended answer and counterclaim filed in the U.S. Court of Federal Claims seeks setoffs against risk-corridor liabilities it owes to largely insolvent insurers under the Patient Protection and Affordable Care Act (ACA) risk corridor (Health Republic Insurance Co. v. United States, No. 16-259C, Fed. Clms.).
RALEIGH, N.C. — A borrower and pledgors to a loan agreement filed counterclaims in a North Carolina federal court on Oct. 29 for breach of contract, bad faith and breach of fiduciary duty against a health insurer in rehabilitation (Colorado Bankers Life Insurance Company v. Tybee Island Asset Management, LLC, et al., No. 20-520, E.D. N.C.).
BATON ROUGE, La. — The rehabilitator for an insolvent insurer failed to assert a Caremark claim against a former director of the insurer’s parent company, defendants argue in an Oct. 30 brief, asking for the adoption of a Louisiana federal magistrate judge’s report recommending denial of remand in a lawsuit regarding loans that allegedly misled state insurance regulators on the insurer’s finances (James J. Donelon v. Jeffrey C. Pollick, et al., No. 20-177, M.D. La.).
NEW HAVEN, Conn. — An insurer for a captive manager argues to a Connecticut federal court in an Oct. 30 motion to dismiss that its policy limits were already satisfied regarding settlement of negligence allegations by the receiver of an insolvent insurer against the captive manager (Trinidad Navarro v. Allied World Surplus Lines Insurance Company, No. 20-1305, D. Conn.).
LOUISVILLE, Ky. — A transportation managing general underwriter and its related entities in an Oct. 29 motion ask a Kentucky federal court to stay “broad and costly discovery” in a claimant’s dispute against them and an insolvent insurer with regard to a $750,000 truck crash judgment (George Gillett v. Spirit Commercial Auto Risk Retention Group, Inc., et al., No. 19-260, W.D. Ky.).
WASHINGTON, D.C. — An actuarial firm argues in an Oct. 28 brief that there is no federal question for the U.S. Supreme Court to consider over an Iowa Supreme Court’s ruling compelling an insolvent health insurer’s liquidator and special deputy liquidator to arbitrate common-law tort claims against the firm based upon an arbitration provision in a preinsolvency agreement between the insurer and the firm (Doug Ommen, et al. v. Milliman, Inc., et al., No. 20-249, U.S. Sup.).
NEW YORK — Hedge funds liquidators filed several opposition briefs on Oct. 19 to the motions brought by a former member of Platinum Management (NY) LLC seeking to preclude certain evidence and claims ahead of his New York federal court trial regarding the former member’s alleged role in the hedge funds’ collapse (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.).
MIAMI — In “an unusual procedural posture,” an English reinsurer preemptively removed a not-yet-filed third-party bad faith complaint to Florida federal court, individuals who were awarded a $844 million default judgment in connection with a plane crash near Medellin, Colombia, argue in their Oct. 19 motion for remand to state court where the original suit was filed (Priscila Elen De Souza Lima, et al. v. Linea Aerea Merida Internacional De Aviacion, et al., No. 20-23631, S.D. Fla.).
SACRAMENTO, Calif. — Applied Underwriters Inc. filed a complaint on Oct. 20 in California federal court accusing the state’s insurance department of an “unlawful and bad faith campaign” to place a former affiliate of Applied into conservatorship in response to several favorable rulings to Applied in litigation involving its reinsurance participation agreement (RPA) with insureds (Applied Underwriters, Inc., et al. v. Ricardo Lara, et al., No. 20-1029, E.D. Calif.).
WILMINGTON, Del. — A Delaware bankruptcy judge on Oct. 16 approved two separate settlements totaling close to $14 million that were reached between Patriot National Inc.’s litigation trustee and 13 former directors and officers of the bankrupt insurance firm over their alleged corporate waste (In re: Patriot National, Inc., Chapter 11, No. 18-10189, D. Del. Bkcy.).
ANDERSON, S.C. — The special deputy receiver of a multiple-employer self-insured health plan on Oct. 16 asked a South Carolina federal court for default judgments worth $6 million against parties being accusing of defrauding the health plan by entering into fraudulent transactions via letters of credit (LOCs) (Michael J. FitzGibbons v. Alton Atkinson, et al., No. 17-2092, D. S.C.).
NEW YORK — A New York federal judge on Oct. 16 issued a further stay of an insurer’s lawsuit seeking redress for violation of its equal protection rights against New York Superintendent of Financial Services Linda Lacewell in light of the insurer’s appeal of a recent liquidation order against it (Park Insurance Co. v. Maria T. Vullo, et al., No. 18-9628, S.D. N.Y.).
WASHINGTON, D.C. — The government may amend its answer to seek setoffs against risk-corridor liabilities it owes to largely insolvent insurers under the Patient Protection and Affordable Care Act (ACA) risk corridor, a federal judge in the U.S. Court of Federal Claims said Sept. 30 in finding that amendment would be neither untimely nor prejudicial (Health Republic Insurance Co. v. United States, No. 16-259C, Fed. Clms., 2020 U.S. Claims LEXIS 1898).
HARRISBURG, Pa. — The liquidator of Reliance Insurance Co. in an Oct. 13 application asks a Pennsylvania trial court for an order approving her recommendation on the last notices of determination (NODs) for state guaranty associations, which includes an allowed amount of $16.9 million for class (e) claims (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).
NEW YORK — OneTitle National Guaranty Co. Inc. was ordered into liquidation on Oct. 6 by a New York justice who also appointed the state’s superintendent of Financial Services as the liquidator (In matter of OneTitle National Guaranty Company, Inc., No. 451834/2020, N.Y. Sup., New York Co.).
OKLAHOMA CITY — BancInsure Inc.’s receiver has no right under Oklahoma law to assert direct claims against a directors and officers (D&O) insurer arising from the denial of coverage to a BancInsure director, the D&O insurer tells an Oklahoma federal court in an Oct. 14 motion to dismiss (Glen Mulready v. Westchester Fire Insurance Company, No. 20-782, W.D. Okla.).
NEW YORK — A former member of Platinum Management (NY) LLC on Sept. 29 asked a New York federal court to preclude any references to punitive damages in his trial over a breach of fiduciary claim regarding the collapse of hedge funds and to exclude punitive damages from the jury’s instructions (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.).
NEWARK, N.J. — An industrial equipment supplier on Oct. 13 asked a New Jersey federal court to enter a default against an insurance company in its breach of contract case regarding the insurer’s refusal to pay for an environmental investigation and remediation at its property (Industrial Corner Corp. v. Public Service Mutual Insurance Company, No. 20-6677, D. N.J.).