COLUMBIA, S.C. — A bank sued for its role as trustee of a reinsurance trust for an insolvent insurer on Sept. 20 responded to an insurer’s first amended complaint in a South Carolina federal court and counterclaimed for contractual indemnification (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).
BOISE, Idaho — Pursuant to a settlement agreement, an Idaho federal magistrate judge on Sept. 18 dismissed with prejudice a trust bank’s wrongful acts lawsuit against an insolvent insurer (Idaho Trust Bank v. BancInsure Inc., et al., No. 12-00032, D. Idaho).
DALLAS — In a tortious interference lawsuit, an insolvent insurer was granted sanctions by a Texas federal judge on Sept. 20 against a corporate defendant and reasonable attorney fees and costs for the defendant’s failure to respond to discovery requests (Lincoln General Insurance Co. v. James Thornton Maxwell, No. 16-3198, N.D. Texas, 2018 U.S. Dist. LEXIS 160740).
NEW YORK — A New York justice on Aug. 29 asked policyholders, claimants, creditors and parties interested in the affairs of Guarantee Insurance Co. to show cause as to why the insurer’s ancillary receivership proceeding should not be closed (In the matter of the ancillary receivership of Guarantee Insurance Co., No. 453158/2017, N.Y. Sup., New York Co.).
NEW YORK — A New York federal judge on Sept. 7 told an insurer in run-off and reinsurers that they should be ready by April 2019 for trial of the insurer’s allegations that the reinsurers, their affiliates and their current and former owners, officers and insiders misused and mismanaged $320 million in investments (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-06658, S.D. N.Y.).
COLUMBIA, S.C. — An insurer filed a first amended complaint on Sept. 6, asserting breach of contract, breach of fiduciary duty, negligence and gross negligence, negligent misrepresentation and civil conspiracy claims in a South Carolina federal court dispute involving a bank sued for its role as trustee of a reinsurance trust for an insolvent insurer (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).
NEWARK, N.J. — A New Jersey pedestrian filed a lawsuit on Sept. 17 against the New Jersey Property Liability Insurance Guaranty Association (NJPLIGA) and the driver and owner of a vehicle that was involved in a collision causing him injuries (Thomas H. Snyder v. Karim Teran, et al., No. ESX-L-006567-18, N.J. Super., Essex Co.).
FRANKFORT, Ky. — On remand after the vacating of an order denying arbitration, a Kentucky federal judge on Sept. 11 compelled an insolvent insurer’s liquidator and an administrative services provider to argue their breach of contract dispute in arbitration (Nancy G. Atkins v. CGI Technologies and Solutions Inc., No. 16-00037, E.D. Ky., 2018 U.S. Dist. LEXIS 154564).
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 Sept. 11, granting a motion to compel arbitration of an insurer’s liquidator’s breach of contract case (Beam Partners LLC, et al. v. Nancy G. Atkins, No. 17-004, E.D. Ky., 2018 U.S. Dist. LEXIS 154566).
CONCORD, N.H. — In a dispute against excess funds in the winding down of New Hampshire Medical Malpractice Joint Underwriting Association (JUA), a New Hampshire trial justice on Sept. 6 approved a proposed plan of allocation awarding $25,000 to each of three class representatives (Georgia A. Tuttle, M.D., et al. v. New Hampshire Medical Malpractice Joint Underwriting Association and In the Matter of the Winding Down of the New Hampshire Medical Malpractice Joint Underwriting Association, Nos. 2010-294 & 2015-347, N.H. Super., Merrimack Co., 2018 N.H. Super. LEXIS 18).
NEW ORLEANS — A Louisiana federal judge on Sept. 6 refused to reconsider a ruling in a criminal action over an auditor’s role in the liquidation of an insolvent insurer in which the judge denied a defendant’s motion for a certificate of innocence for his conviction for money laundering (United States v. Michael H. O’Keefe Sr., No. 95-106, E.D. La.).
WASHINGTON, D.C. — Congress’ subsequent actions clearly and unequivocally limited payments in the Patient Protection and Affordable Care Act (ACA) risk corridor to income received through the program, regardless of the language it used in enacting the program, the government said Aug. 31 in urging the Federal Circuit U.S. Court of Appeals to deny a series of insurer’s request for en banc rehearing (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.).
COLUMBIA, S.C. — Finding that the South Carolina Property and Casualty Insurance Guaranty Association Act is ambiguous, the state’s high court ruled Sept. 5 that the act requires that settlement amounts be offset from the total amount of an injured party’s damages rather than from a $300,000 statutory cap (Janette Buchanan, et al. v. The South Carolina Property and Casualty Insurance Guaranty Association, No. 2016-002156, S.C. Sup., 2018 S.C. LEXIS 113).
LOS ANGELES — The liquidator of an insolvent medical professional liability insurer filed an amended answer on Aug. 29 in a California federal court lawsuit seeking reimbursement under a letter of credit issued to the insurer to stay enforcement of a $2.5 million medical malpractice judgment (MUFG Union Bank, N.A. v. Steven C. Taylor, No. 18-02772, C.D. Calif.).
HARRISBURG, Pa. — The liquidator for Reliance Insurance Co. filed an application on July 23 with a Pennsylvania court for an order approving a recommendation on final guaranty association omnibus notices of determination (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).
RICHMOND, Va. — A settlement agreement released all claims of California Self-Insureds’ Security Fund against the trust of an insolvent self-insured employer, including those claims against the employer’s excess insurer, a Virginia federal bankruptcy judge ruled Aug. 27, finding that the fund breached the agreement by issuing a demand upon the excess insurer (In re: Circuit City Stores Inc., et al., No. 08-35653, Chapter 11, Alfred H. Siegel v. California Self-Insureds’ Security Fund, et al., No. 18-03040, E.D. Va. Bkcy., 2018 Bankr. LEXIS 2572).
LEXINGTON, Ky. — In a lawsuit alleging statutory and regulatory violations against state agencies, an insolvent self-insured employer’s president was required to request a refund of security with the commissioner for the Kentucky Department of Workers’ Claims, the Kentucky Court of Appeals held Aug. 24 (James R. Martin v. Kentucky Individual Self-Insurance Guaranty Fund, et al., No. 2017-CA-000499-MR, Ky. App., 2018 Ky. App. Unpub. LEXIS 613).
WASHINGTON, D.C. — Because a settlement agreement did not obligate the U.S. government to act as a guarantor of future periodic annuity payments for medical malpractice claims when an insurer became insolvent, the Federal Circuit U.S. Court of Appeals on Aug. 20 affirmed the entry of summary judgment in favor of the government (Karen L. Shaw, et al. The United States, No. 17-2136, Fed. Cir., 2018 U.S. App. LEXIS 23189).
ATLANTA — In what it calls a case of first impression, the Georgia Insurers Insolvency Pool (GIIP) argues to the Georgia Court of Appeals in a July 30 brief that a Georgia statute requires that a person who presents a claim to it first exhaust all coverages provided by solvent insurance companies for the claim (Rigoberto Riano v. Georgia Insurers Insolvency Pool, No. A18A1981, Ga. App.).
ST. THOMAS, Virgin Islands — A Virgin Islands insurance commissioner filed an accounting and status report on July 26 informing a Virgin Islands federal court that there have been no new claims and that the amount being held for the insolvent insurer remains above $1.4 million (In the matter of Phoenix Fire and Marine Insurance Company Ltd., No. 1991-271, D. Virgin Islands).