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Mealey's Reinsurance

  • July 30, 2021

    $10.9M Awarded In Asbestos, Reinsurance Coverage Suit; Prejudgment Interest Sought

    ALBANY, N.Y. — Following a jury’s verdict in favor of an insurer on whether defense costs paid on behalf of an insured for asbestos liabilities are covered under a reinsurer’s policies and entry of judgment awarding $10,901,005 in damages, the insurer on July 29 filed notice of a motion before a New York federal judge to correct or amend the motion to include prejudgment interest of $8,444,834.

  • July 30, 2021

    Magistrate Recommends Denying English Law Bid For Attorney Fees Against Reinsurer

    NEW YORK — An English rule on attorney costs does not apply to a dispute over responsibility for an environmental claims settlement because that rule “is procedural under the circumstances in this case,” a New York federal magistrate judge said in a July 28 report recommending denial of an umbrella insurer’s motion seeking almost $400,000 in attorney fees and costs against an English reinsurer.

  • July 29, 2021

    Regulators To 9th Circuit: Don’t Expedite Suit Testing Conservatorship Of Insurer

    SAN FRANCISO — Expediting an appeal contesting a California federal judge’s dismissal of allegations that state regulators abused their authority by actions including obtaining a conservatorship against a workers’ compensation insurance carrier is not warranted and would be prejudicial, the regulators tell the Ninth Circuit U.S. Court of Appeals in their July 27 opposition to a motion to expedite.

  • July 28, 2021

    Insurer Asserts Affirmative Defenses For Coverage Of Environmental Claim

    NEWARK, N.J. — In a July 14 answer to an amended complaint filed in New Jersey federal court about environmental investigation and remediation at an insured property, an insurer asserts numerous affirmative defenses including that the insured “is barred from bringing a claim against the defendant by virtue of being made whole through the voluntary settlement of a previous matter.”

  • July 22, 2021

    Appellant To 11th Circuit: Ruling For Reinsurer Raises 1st Impression Issues

    ATLANTA — A federal judge in Florida erred in entering summary judgment in favor of a reinsurer in a breach of contract dispute, a self-insured intergovernmental risk management association argues in a July 6 appellant brief to the 11th Circuit Court of Appeals, seeking review of issues that it said “appear to be matters of first impression in this Circuit” — whether a reinsurance treaty must include the express phrase “follow the fortunes” or similar language to trigger the “follow the fortunes” doctrine, and when possessory interest accrues.

  • July 22, 2021

    Oral Arguments Held On Motion For Attorney Fees Against Reinsurer Under English Law

    NEW YORK — A New York federal magistrate judge on July 19 heard oral arguments on an umbrella insurer’s motion seeking almost $400,000 in attorney fees and costs in a dispute with an English reinsurer over responsibility for an environmental claims settlement.

  • July 22, 2021

    Class Counsel Seeks Approval Of Attorney Fees In ACA Risk-Corridor Funds Suit

    WASHINGTON, D.C. — Class counsel on July 20 moved for the U.S. Court of Federal Claims to approve their attorney fee request of 5 percent of a $45,417,643.02 judgment for a subclass that consists of one insolvent insurer in insolvent insurers’ lawsuit seeking a declaratory judgment that the U.S. government owes them millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program.

  • July 21, 2021

    Federal Judge Sets Final Pretrial Conference In Reinsurance Billings Suit

    BOSTON — In a procedural order noted in a July 16 docket entry, a federal judge in Massachusetts set a final pretrial conference for Sept. 22 in a reinsurance billings dispute over the allocation of a $120 million environmental claims settlement.

  • July 21, 2021

    Railroad Company, Reinsurer Spar Over Additional Claims In Injunctive Relief Suit

    SPRINGFIELD, Ill. — In July 16 filings in federal court in Illinois, parties in a suit filed by a railroad company seeking injunctive relief over reinsurer Illinois Mine Subsidence Insurance Fund’s (IMSIF) pursuit of reimbursement as subrogee for mine subsidence claims spar about whether the court has subject matter jurisdiction over claims asserted in the railroad company’s amended complaint.

  • July 21, 2021

    TRO Remains In Effect; Appeal Stay Should Too, Bermuda Reinsurer Tells 2nd Circuit

    NEW YORK — In a July 16 status letter, a Bermuda reinsurer notified the Second Circuit U.S. Court of Appeals that its appeal related to the confirmation of a $524 million arbitration award issued in favor of a Puerto Rico life insurer in a dispute over alleged improper asset divestments for a reinsurance trust should remain stayed because a temporary restraining order in the reinsurer’s bankruptcy proceeding remains in effect.

  • July 20, 2021

    9th Circuit Asked To Expedite 2nd Suit Testing Conservatorship Of Insurer

    SAN FRANCISCO — An appeal contesting a federal judge in California’s dismissal of allegations that state regulators abused their authority by actions including obtaining a conservatorship against a workers’ compensation insurance carrier must be hastened or the appeal will not be completed before the conservation is lifted, the appellant told the Ninth Circuit U.S. Court of Appeals in a July 19 motion to expedite.

  • July 19, 2021

    Federal Judge Says Evidence Of Insurer’s Reinsurance Is Prejudicial To Insurer

    ST. LOUIS — A Missouri federal judge on July 16 granted an insurer’s motion in limine to preclude evidence of its reinsurance in a long-running coverage dispute over liability for injuries and property damages sustained as the result of the insured’s lead-smelting operations after determining that allowing evidence regarding the insurer’s available reinsurance poses a high risk of prejudice to the insurer.

  • July 15, 2021

    Oral Arguments Scheduled On Insurer’s Motion For Attorney Fees Against Reinsurer

    NEW YORK — A New York federal magistrate judge on July 1 scheduled oral arguments for July 19 on an umbrella insurer’s motion seeking almost $400,000 in attorney fees and costs in a dispute with an English reinsurer over responsibility for an environmental claims settlement.

  • July 15, 2021

    Reinsured Is Entitled To Select New Arbitrator, Federal Judge Says

    SAN FRANCISCO — A California joint powers authority is entitled to select a new arbitrator, a California federal judge said July 12 after determining that the authority’s arbitrator is not qualified to serve as an arbitrator in the arbitration of a dispute involving two reinsurance certificates issued to the authority.

  • July 14, 2021

    Auto Dealer, Reinsurer Deny Breach Of Contract Allegations In Answer

    LAFAYETTE, Ind. — An automotive dealership and a reinsurer in a July 6 answer to a complaint deny allegations that the dealership breached a contract and is liable for paying back more than $1 million loaned to the dealership and guaranteed by the reinsurer.

  • July 14, 2021

    Judge Dismisses Asbestos, Reinsurance Suit Following Conclusion Of Arbitration

    NEW YORK — A New York federal judge on July 8 dismissed a reinsurance suit over asbestos loss billings after the parties notified the court that the parties’ arbitration proceeding had concluded.

  • July 14, 2021

    New York Justice Reiterates That Suit Against Excess-Of-Loss Insurer Is Time-Barred

    RIVERHEAD, N.Y. — A New York justice on June 9 denied a motion for reargument filed by a trust seeking coverage under an excess-of-loss insurance policy for a workers’ compensation claim that exceeded the insured’s self-insured retention after again determining that the insured’s breach of contract suit is barred by the applicable six-year statute of limitations.

  • July 14, 2021

    Insurer, Reinsurer Seek Dismissal Of Suit Following Completion Of Arbitration

    RIVERSIDE, Calif. — Following the completion of an arbitration proceeding between an insurer and a reinsurer over $8.6 million in equipment breakdown claims, the parties on June 24 filed a stipulation of dismissal in a California federal court.

  • July 14, 2021

    Reinsurer Seeks To Seal Unredacted Version Of Answer In Asbestos Coverage Suit

    TRENTON, N.J. — A reinsurer contends in a July 1 motion to seal its unredacted answer to a fourth amended complaint in a dispute over indemnification for asbestos bodily injury claims that sealing the unredacted portions of its answer is warranted because the unredacted version contains information about a confidential settlement agreement.

  • July 14, 2021

    Judge Allows Settling Insurer To Withdraw Funds In Excess Collateral Reinsurance Suit

    MINNEAPOLIS — A Minnesota federal magistrate judge on June 24 entered an order permitting a settling insurer to withdraw funds it deposited in an interpleader suit over excess collateral in an insurance-reinsurance program.