GREENSBORO, N.C. — A North Carolina federal judge on Nov. 16 refused to dismiss a breach of contract lawsuit against an insurer regarding the return of collateral funds, rejecting the insurer’s argument that two defendants previously dismissed from the lawsuit were necessary and indispensable parties (Debbie’s Staffing Services Inc. v. Highpoint Risk Services LLC, et al., No. 17-657, M.D. N.C., 2018 U.S. Dist. LEXIS 196160).
AUSTIN, Texas — A special deputy receiver (SDR) for Access Insurance Co. provided a report to a Texas trial court on a status conference held Nov. 5 detailing, among other matters, the termination of a transition services agreement, continued reinsurance reporting and the preparation of an application to make first early access distribution (The Texas Department of Insurance v. Access Insurance Co., No. D-1-GN-18-001285, Texas Dist., Travis Co., 261st Jud.).
LOS ANGELES — Having previously stayed a breach of contract case against an insolvent insurer pending resolution of the insurer’s liquidation, a California federal judge on Nov. 2 discharged an order to show cause and ordered the insolvent insurer to file another status report in six months (Yancy Alvarez, et al. v. Access General Insurance Co., No. 18-336, C.D. Calif.).
NEWARK, N.J. — A New Jersey man seeks personal injury damages from the New Jersey Property Liability Insurance Guaranty Association (NJPLIGA) in a Nov. 1 complaint filed in a New Jersey trial court for injuries sustained from a motor vehicle accident (Maurico Tapia v. Eduin Diaz, et al., No. ESX-L-007790-18, N.J. Super., Essex Co.).
AUCKLAND, New Zealand — The Auckland High Court ordered CBL Insurance Ltd., a New Zealand insurer and reinsurer, into liquidation on Nov. 12 (In the matter of CBL Insurance Ltd. in liquidation, No. CIV-2018-404-001667, New Zealand High, Auckland Registry).
HARRISBURG, Pa. — The liquidator for Reliance Insurance Co. filed an application on Oct. 30 asking a Pennsylvania court to approve her report recommending an allowance of $14.2 million on resolved claims (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).
ST. THOMAS, Virgin Islands — Noting a new deposit, a Virgin Islands insurance commissioner filed an accounting and status report on Nov. 2, telling a Virgin Islands federal court that there are no new claims and that the amount being held for an insolvent insurer is $1.44 million (In the matter of Phoenix Fire and Marine Insurance Company Ltd., No. 1991-271, D. Virgin Islands).
CONCORD, N.H. — The New Hampshire insurance commissioner on Oct. 19 filed a report and recommendations for claims in a state trial court’s liquidation of The Home Insurance Co. (In the matter of the liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).
ST. LOUIS — State insurance guaranty associations and banks filed opposition briefs on Nov. 5 in response to five summary judgment motions on key issues in a Missouri federal court dispute over the mishandling of funds belonging to insolvent funeral insurers (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo.).
WASHINGTON, D.C. — With two judges dissenting, a federal appeals court on Nov. 6 declined to rehear health care insurers’ case claiming that the government owes them billions of dollars in Patient Protection and Affordable Care Act (ACA) risk-corridor funds (Land of Lincoln Mutual Health Insurance Co. v. United States, No. 17-1224, Moda Health Plan Inc. v. United States, No. 17-1994, Blue Cross and Blue Shield of North Carolina v. United States, No. 17-2154, Maine Community Health Options v. United States, No. 17-2395, Fed. Cir., 2018 U.S. App. LEXIS 31395).
WILMINGTON, Del. — In a dispute regarding alleged misconduct that caused injury to an insurer in liquidation, the Delaware Supreme Court on Nov. 5 denied interlocutory review of a lower court’s orders allowing equity investors to pursue derivative claims on behalf of themselves and the insolvent insurer (U.S. Bank National Association, et al. v. Charles David Wood Jr., et al., No. 549, 2018, Del. Sup., 2018 Del. LEXIS 491).
COLUMBIA, S.C. — In South Carolina federal court, a bank sued for its role as trustee of a reinsurance trust for an insolvent insurer on Nov. 2 sought summary judgment against an insurer regarding claims for breach of contract, breach of fiduciary duty, negligence, negligent misrepresentation and civil conspiracy because those claims are time-barred (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).
NEW YORK — A New York federal judge on Nov. 1 issued a protective order regarding discovery in a case between a run-off insurer, reinsurers and the reinsurers’ related entities over allegations of mismanagement and misuse of $320 million in investments (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-06658, S.D. N.Y.).
TALLAHASSEE, Fla. — A Florida judge on Oct. 26 discharged First Commercial Transportation and Property Insurance Co. from receivership (In re: The receivership of First Commercial Transportation and Property Insurance Co., No. 2009-CA-002669, Fla. Cir., 2nd Jud., Leon Co.).
NEW YORK — In an Oct. 16 complaint filed in a New York federal court, the Securities and Exchange Commission 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.).
CHICAGO — An insolvent insurer’s liquidator on Oct. 29 moved to remand a reinsurer’s Illinois federal court dispute seeking confirmation of an arbitration award for $437,000 in attorney fees and also filed its reply to a previous motion to dismiss or stay based on a lack of subject matter jurisdiction (Catalina Holdings [Bermuda] Ltd. v. Jennifer Hammer, No. 18-05642, N.D. Ill.).
JERSEY CITY, N.J. — A woman alleges in an Oct. 29 complaint in New Jersey trial court that the New Jersey Property and Liability Insurance Guaranty Association (NJPLIGA) breached its statutory duty to provide benefits for personal injuries (Alma Colon v. New Jersey Property and Liability Insurance Guaranty Association, et al., No. HUD-L-004321-18, N.J. Super., Hudson Co.).
NEW YORK — In a New York federal case alleging mismanagement and misuse of $320 million in investments, a run-off insurer argues in an Oct. 29 opposition that reinsurers and related entities fail to address allegations of their active participation in a fraudulent conspiracy in their motion to partially dismiss claims (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-06658, S.D. N.Y.).
FRANKFORT, Ky. — Kentucky’s prohibition of arbitration between insolvent insurers and third-party contractors “does not trump the mandate” of the Federal Arbitration Act (FAA) that valid arbitration agreements must be upheld, a Kentucky federal judge ruled Oct. 23 (Milliman Inc., et al. v. Donald Roof, No. 18-00012, E.D. Ky., 2018 U.S. Dist. LEXIS 181652).
NEW YORK — Midland Insurance Co., which is in liquidation, cannot prorate its asbestos coverage, a New York trial justice ruled Aug. 10, finding that a trust can pursue the full limits of excess policies issued by the insolvent insurer (In the matter of the liquidation of Midland Insurance Co., No. 041294/1986, N.Y. Sup., New York Co., 2018 N.Y. Misc. LEXIS 4668).