WASHINGTON, D.C. — The U.S. Supreme Court heard arguments on Dec. 10 about whether the Patient Protection and Affordable Care Act (ACA)’s “shall pay” language created a financial obligation for the government or at all times remained contingent on later congressional funding (Land of Lincoln Mutual Health Insurance Co. v. United States, No. 18-1038, Moda Health Plan Inc., et al. v. United States, No. 18-1028, Maine Community Health Options v. United States, No. 18-1023, U.S. Sup.).
NEW ORLEANS — A majority of a Louisiana appellate panel on Dec. 4 held that an insured’s appeal in a coverage dispute with his insolvent insurer over an auto accident was not timely filed and, thus, there was no jurisdiction to consider the merits (Gerald J. Calogero v. USA Agencies Casualty Insurance Company, Inc., No. 2019-CA-0347, 2019 La. App. LEXIS 2184).
NEW YORK — A federal judge in New York on Dec. 5 dismissed a runoff insurer’s claims for civil conspiracy, contribution and indemnity and unjust enrichment against an investment bank and a financial services company because the runoff insurer failed to assert sufficient allegations to support them in a dispute concerning the investment of $320 million in a failed Ponzi scheme; however, the judge allowed aiding and abetting claims to survive (In re Platinum-Beechwood Litigation, No. 18-6658, Senior Health Insurance Company of Pennsylvania v. Lincoln International LLC, et al., No. 19-07137, S.D. N.Y., 2019 U.S. Dist. LEXIS 210412).
GRETNA, La. — The Louisiana Insurance Guaranty Association (LIGA) failed “to present clear and unequivocal proof” that an insolvent insurer satisfied the requirements of Louisiana Revised Statutes Section 9:3550 for proper cancellation of an automobile insurance policy for nonpayment of a premium, a Louisiana appeals panel ruled Dec. 4 (Lucy Benitez v. Ahmed Elsayed, et al., No. 19-CA-122, 2019 La. App. LEXIS 2189).
SAN JUAN, Puerto Rico — A federal judge in Puerto Rico on Dec. 4 dismissed an insolvent insurer’s dispute over $150 million in losses from two hurricanes against its reinsurers and ordered the parties to proceed to arbitration pursuant to the clauses in the reinsurance contracts (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).
REDWOOD CITY, Calif. — A California judge on Nov. 4 appointed the state’s insurance commissioner as conservator of California Insurance Co. (CIC) and enjoined all litigation involving the insurer (Insurance Commissioner of the State of California v. California Insurance Co., No. 19CIV06531, Calif. Super., San Mateo Co.).
MINNEAPOLIS — A trial court properly analyzed all eight factors in awarding a terminated law firm a portion of a $21.5 million settlement an asbestos trust received in an insurance dispute, a Minnesota appeals court held Dec. 2 (Faricy Law Firm PA v. API Inc., Asbestos Settlement Trust, No. A19-0846, Minn. App., 2019 Minn. App. Unpub. LEXIS 1118).
BRIDGEPORT, Conn. — Citing an insurer’s restraining order, a reinsurer, the insurer and affiliates in a Nov. 21 letter request that a Connecticut federal judge stay an insured’s case over alleged violations of Connecticut insurance, unfair trade practice and securities laws concerning workers’ compensation insurance programs (Charter Oak Oil Co. Inc. v. Applied Underwriters Inc., et al., No. 17-00689, D. Conn.).
ST. LOUIS — A federal judge in Missouri on Nov. 22 indicated that he would recalculate prejudgment interest to be $12.2 million in a total damages award of $99.4 million in favor of insolvent funeral insurers’ receiver and state insurance guaranty associations in a dispute regarding allegations over the mishandling of the insurers’ funds (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo.).
NEW YORK — A federal judge in New York on Nov. 19 denied reconsideration of a decision to defer ruling on an investment company’s former executive’s post-acquittal relief for advancement of $708,784.77 in legal fees and costs from a runoff insurer because the executive fails to meet the strict standard for reconsideration (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 201679).
NEW YORK — A federal judge in New York on Nov. 19 ordered a runoff insurer to pay $467,795.32 to plaintiffs after reconsidering a previous order and set forth the procedures for advancement of fees and expenses under investment management agreements (IMAs) for third-party actions arising out of the runoff insurer’s initial fraud lawsuit over the mismanagement and misuse of $320 million (In re: Platinum-Beechwood Litigation, No. 18-6658, B Asset Manager L.P., et al. v. Senior Health Insurance Company of Pennsylvania, No. 19-4487, S.D. N.Y.).
TALLAHASSEE, Fla. — A Florida trial court on Oct. 25 amended an order of liquidation against the Florida Specialty Insurance Co. (FSIC) to remove any finding that FSIC through its officers or directors “willfully violated the law” or that the insurer is insolvent under the law (State of Florida, et al. v. Florida Specialty Insurance Co., No. 2019 CA 002328, Fla. Cir., Leon Co.).
HARRISBURG, Pa. — An insurer’s liquidator had authority to intercept a $1 million settlement check intended for delivery to a plaintiff in a New Jersey civil action brought against the insurer and its insureds, a Pennsylvania judge ruled Oct. 17 (Jessica K. Altman v. Daniel Kyler, No. 1 HPI 2018, Pa. Cmwlth., 2019 Pa. Commw. LEXIS 1011).
KANSAS CITY, Mo. — The receiver for an insolvent insurer argues in an Oct. 15 brief to a Missouri appeals court that a trial judge was correct in denying motions filed after the insurer’s estate was closed because the judge had no jurisdiction to decide the matter (Arthur A. Blumeyer III v. Chlora Lindley-Myers, et al., No. WD82921, Mo. App., Western Dist.).
RICHMOND, Va. — Defendants in Oct. 21 informal briefs request that the Fourth Circuit U.S. Court of Appeals reverse a recommendation to deny summary judgment in part on a special deputy receiver’s claims under the Racketeer Influenced and Corrupt Organizations Act alleging a scheme to defraud a multiple-employer self-insured health plan with fraudulent letters of credit (LOCs) (Michael J. FitzGibbons, et al. v. De’Shaun Williams, et al., No. 19-2049, 4th Cir.).
NEW YORK — An investment bank and a financial services company argue in a Nov. 18 reply brief to a New York federal court that despite 18 months and the benefit of discovery, a runoff insurer fails to allege that two valuation reports prepared by them “substantially assisted” an alleged fraud or caused damage to the runoff insurer in the investment of $320 million in a failed Ponzi scheme (In re Platinum-Beechwood Litigation, No. 18-6658, Senior Health Insurance Company of Pennsylvania v. Lincoln International LLC, et al., No. 19-07137, S.D. N.Y.).
NEW YORK — A federal judge in New York on Nov. 12 declined to sever claims made by a runoff insurer against a defendant in two separate lawsuits arising out of allegations of a hedge fund scheme and the misuse and mismanagement of $320 million (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936; Melanie L. Cyganowski, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).
AUSTIN, Texas — A reinsurer and an insolvent insurer, as debtors, ask a Texas federal bankruptcy court in a Nov. 12 brief to waive compliance requirements for $5 million in proceeds from a life insurance policy with the account where the proceeds are currently being held (In re: Capson Corp., et al., Nos. 19-10890, 19-10893 & 19-10894, W.D. Texas Bkcy.).
NEW YORK — In a dispute arising out of a receiver’s lawsuit seeking redress for damages from of a “massive fraudulent scheme” involving hedge funds, insurers on Nov. 8 inform a New York federal court that they voluntarily dismiss claims against a third-party defendant for fraudulent inducement and violations of the Racketeer Influenced and Corrupt Organizations Act after previously doing so for other defendants (In re Platinum-Beechwood Litigation, No. 18-6658, Washington National Insurance Co., et al. v. Mark Nordlicht, et al., No. 18-12018, S.D. N.Y.).
SAN JUAN, Puerto Rico — Reinsurers on Nov. 8 joined an opposition brief arguing to a Puerto Rico federal court that an insurer’s liquidator can be bound to arbitration clauses in the insurer’s reinsurance agreements in a dispute over $150 million in losses from two hurricanes (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).