Mealey's Insurance Insolvency

  • August 06, 2019

    Insider Seeks Reconsideration Of Ruling On Motion To Dismiss Aiding, Abetting Claim

    NEW YORK — An alleged insider argues in an Aug. 2 reply brief to a New York federal court that it should reconsider a ruling regarding allegations in a second amended complaint (SAC) of his role in what two hedge funds’ liquidators describe as “one of the most spectacular hedge fund collapses” because he “sat on the opposite side of the table” from the funds and his only duty was to himself and to the entities he controlled (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.).

  • August 05, 2019

    Runoff Insurer:  No Contractual Advancement, Indemnification Owed To Former Executive

    NEW YORK — A runoff insurer argues in an Aug. 1 motion that a recent criminal conviction of an investment company’s former executive confirms that he is not entitled to contractual advancement and indemnification of expenses and legal fees in connection with several lawsuits arising from the runoff insurer’s allegations of misuse of $320 million by affiliates of a failed Ponzi scheme (In re:  Platinum-Beechwood Litigation, No. 18-6658, David Levy v. Senior Health Insurance Company of Pennsylvania, No. 19-3211, S.D. N.Y.).

  • August 05, 2019

    Insolvent Surety Does Not Oppose Request For $3.6M Supersedeas Bond, Stay

    RIVERSIDE, Calif. — An insolvent surety tells a California federal judge in an Aug. 1 brief that it does not oppose an ex parte application for approval of a supersedeas bond in the amount of $3.6 million and a stay of a judgment’s enforcement in its reimbursement dispute against contractors to the extent the stay is issued only to contractors whose liability is secured by the proposed bond (Western Insurance Co. in liquidation v. Frontier Homes LLC., et al., No. 17-2181, C.D. Calif.).

  • August 02, 2019

    Judge Denies Preliminary Injunction To Insured In Case Over Premium Costs

    DALLAS — A Texas federal judge on July 30 denied an insured’s application for a preliminary injunction because the insured cannot demonstrate a substantial likelihood of success on the merits in his dispute over his insurer’s ability to raise premium costs due to an assumption reinsurance agreement and a rehabilitation plan involving another insurer (Don B. Chae v. American Fidelity Assurance Co., No. 19- 157, N.D. Texas, 2019 U.S. Dist. LEXIS 127563).

  • August 01, 2019

    Judge Upholds Percentages For Allocation Of Expenses In Runoff Insurer’s Misuse Case

    NEW YORK — A federal judge in New York on July 23 denied reconsideration of his ruling on the allocation of advancement of expenses in several lawsuits connected to a runoff insurer’s case over allegations of misuse of $320 million by affiliates of a failed Ponzi scheme (In re:  Platinum-Beechwood Litigation, No. 18-6658, David Levy v. Senior Health Insurance Company of Pennsylvania, No. 19-3211, S.D. N.Y., 2019 U.S. Dist. LEXIS 123735).

  • July 25, 2019

    Justice Orders Review Of Liquidator’s Settlement With Insurer’s Former Directors

    NEW YORK — A New York justice on July 11 said she would conduct an in camera review of a proposed $2.2 million settlement agreement between the liquidator of Health Republic Insurance of New York Corp. (HRINY) and former HRNY directors and officers regarding alleged breaches of fiduciary duty (In re Health Republic Insurance of New York Corp., No. 450500/2016, N.Y. Sup., New York Co.).

  • July 24, 2019

    Justice Severs Defendants From Case Based Upon Insurer’s Liquidation Order

    NEW YORK — A New York trial justice on June 26 severed certain defendants from a medical malpractice lawsuit based upon a stay issued in a liquidation order against their insolvent insurer (Yajaira Montes Rosario v. Lynn Ladetsky, M.D., et al., No. 805130/2015, N.Y. Sup., New York Co., 2019 N.Y. Misc. LEXIS 3468).

  • July 24, 2019

    Justice Seeks Responses To Request To File Ancillary Receivership For Insurer

    NEW YORK — A New York justice on June 26 ordered parties interested in a Wisconsin court liquidation of an insurer to show cause why an ancillary receivership should not be filed in New York (In re  Northwestern National Insurance Company of Milwaukee, Wis., No. 450931/2019, N.Y. Sup., New York Co.).

  • July 23, 2019

    Puerto Rico Federal Judge Orders Status Report In Personal Injury Lawsuit

    SAN JUAN, Puerto Rico — Now that the Puerto Rico Guaranty Association of Miscellaneous Insurance, on behalf of an insolvent insurer, has appointed counsel to defend, a Puerto Rico federal judge on July 22 ordered parties to a personal injury lawsuit to file a joint status report (Brenda Lee Maduro Colon v. Coca-Cola Puerto Rico Bottlers, No. 17- 01591. D. Puerto Rico).

  • July 23, 2019

    Banks Appeal $102M Entered In Favor Of Insurers’ Receiver, Insurance Guaranty Associations

    ST. LOUIS — Two banks filed a notice on July 18 to a Missouri federal court that they will be appealing to the Eighth Circuit U.S. Court of Appeals a $102,135,293.07 judgment in favor of insurers’ receiver and state insurance guaranty associations in a dispute regarding allegations over the mishandling of insolvent funeral insurers’ funds (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo.).

  • July 22, 2019

    Judge Denies Preliminary Injunction To Pennsylvania Underwriting Association

    HARRISBURG, Pa. — A Pennsylvania federal judge on July 17 ruled that the Pennsylvania Professional Liability Joint Underwriting Association (JUA) has not identified an imminent threat supporting the “extraordinary remedy” of preliminary injunctive relief with regard to the passing and signing of recent legislation that affects it (Pennsylvania Professional Liability Joint Underwriting Association v. Tom Wolf, No. 19-1121, M.D. Pa., 2019 U.S. Dist. LEXIS 118517).

  • July 19, 2019

    Liquidators:  Any Recognition Order In Reinsurer’s Bankruptcy Not To Affect Their Proceedings

    NEW YORK — To the extent that a New York bankruptcy court recognizes a foreign proceeding, creditors and parties in interest to a reinsurer’s bankruptcy proceeding ask in a July 16 motion that they be allowed to bring their claims against the debtor in their own proceedings and that those litigations not be subject to any stay (In re Beechwood Re, No. 19-11560, Chapter 15, S.D. N.Y. Bkcy.).

  • July 19, 2019

    Pedestrian Sues New Jersey Insurance Guaranty Association For Injuries

    HACKENSACK, N.J. — A pedestrian sued the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA) on July 16, alleging negligence by an unknown motorist who struck him while he was walking (Anthony Gratzel v. New Jersey Property-Liability Insurance Guaranty Association, et al., No. BER-L-005257-19, N.J. Super., Bergen Co.).

  • July 18, 2019

    Appeals Panel Upholds Claims Classification Made By Insurer’s Liquidator

    NEW YORK — A trial justice correctly found that an insurer’s liquidator properly classified a claim because a contractor failed to submit timely documentation in the insurer’s liquidation proceeding, a New York appeals court affirmed June 18 in a two-page decision (Superintendent of Financial Services of the State of New York v. Landlease [US] Construction LMB Inc., No. 402424/10, N.Y. Sup., App. Div., 1st Dept., 2019 N.Y. App. Div. LEXIS 4879).

  • July 17, 2019

    Insurer’s Rehabilitator Asks For Lift Of Stay, Remand Of Reinsurance Dispute

    SAN JUAN, Puerto Rico — An insurer’s rehabilitator on July 8 asked a Puerto Rico federal judge to lift a stay of a dispute between the insurer and various of its reinsurers regarding losses from two hurricanes and then remand the case to the insurer’s rehabilitation proceeding (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

  • July 17, 2019

    Reinsurer Seeks Attorney Fees For Liquidator’s ‘Failed’ Motion To Dismiss Award

    CHICAGO — A reinsurer asks an Illinois federal court in a July 8 motion to award it attorney fees and costs because an insolvent insurer’s liquidator’s motion to vacate a $437,000 arbitration award has “no chance of success” (Catalina Holdings [Bermuda] Ltd. v. Jennifer Hammer, No. 18-5642, N.D. Ill.).

  • July 16, 2019

    No Excess Coverage For Insurer’s Receiver’s Clawback Claim, Judge Finds

    TAMPA, Fla. — Because an illegal advantage exclusion applies and a clawback claim filed by an insurer’s receiver was not a claim for a “wrongful act,” a Florida federal judge ruled July 12 that an excess insurer has no duty to defend or indemnify its insured (Akshay M. Desai v. Navigators Insurance Co., No. 18-1843, M.D. Fla., 2019 U.S. Dist. LEXIS 115897).

  • July 16, 2019

    Insolvent Insurer’s Owner, President Allege Violation Of Constitutional Rights

    SAN JUAN, Puerto Rico — An insolvent insurer’s stock owner, its president and vice president sued the Puerto Rico insurance commissioner and others on July 11 in a federal court in Puerto Rico, alleging that defendants engaged in a civil conspiracy to deprive them of their constitutional rights (Victor J. Salgado and Associates Inc., et al. v. Javier Rivera-Rios, et al., No. 19-01663, D. Puerto Rico).

  • July 15, 2019

    Bankruptcy Judge Denies Provisional Relief To Reinsurer’s Liquidator On Security Issue

    NEW YORK — A New York bankruptcy judge on July 10 denied a liquidator’s application for provisional relief staying a decision not yet issued in a New York federal court on a motion seeking an order requiring a reinsurer to post $250 million in additional security (In re Beechwood Re, No. 19-11560, Chapter 15, S.D. N.Y. Bkcy., 2019 Bankr. LEXIS 2077).

  • July 12, 2019

    5th Circuit Upholds Ruling On Auditor’s Motion For Certificate Of Innocence

    NEW ORLEANS — In a criminal action over an auditor’s role in an insurer’s liquidation, the Fifth Circuit U.S. Court of Appeals on July 9 affirmed a lower court’s denial of the auditor’s motion for a certificate of innocence for a conviction for money laundering because there was no abuse of discretion (United States v. Michael H. O’Keefe Sr., No. 18-31033, 5th Cir.).

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