LINCOLN, Neb. — An insurer failed to establish that a Nebraska court had personal jurisdiction to hear a dispute over its workers’ compensation program and amounts owed under a reinsurance participation agreement (RPA) because an insured was a California corporation with California employees, a Nebraska appeals panel ruled Feb. 12 (Applied Underwriters Captive Risk Assurance Company Inc. v. E.M. Pizza Inc., No. A-17-1301, Neb. App., 2019 Neb. App. LEXIS 45).
BROOKLYN, N.Y. — Employers and a reinsurer of an employee benefit plan on Feb. 14 tell a New York federal judge that they intend to seek dismissal of home health aides’ class action complaint over allegations they were cheated out of lost wages and benefits (Ynes M. Gonzalez de Fuente, et al. v. Preferred Home Care of New York LLC, et al., No. 18-6749, E.D. N.Y.).
WASHINGTON, D.C. — In a District of Columbia federal court dispute over a $26 million arbitration award, reinsurers assert in a Feb. 13 brief that their motion to dismiss a financial service company’s amended complaint is not an improper “third bite at the apple” despite concerning issues raised in their prior opposition to a motion for leave to amend (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C.).
NEW YORK — In their fraud and conspiracy lawsuit, liquidators for two hedge funds tell a New York federal court in a Feb. 11 brief that they have asserted specific allegations to withstand motions to dismiss their amended complaint claiming that funds with a net asset value of nearly $1 billion turned out not only to be insolvent but also to have liabilities between $400 million and $800 million (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).
COLUMBIA, S.C. — In a breach of contract and breach of fiduciary duty lawsuit against a bank sued for its role as trustee of a reinsurance trust for an insolvent insurer, a federal magistrate judge in South Carolina on Feb. 12 ordered all parties to conduct mediation (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).
By Robert M. Hall
TRENTON, N.J. — Three defendants in separate motions filed Feb. 8 seek to dismiss based upon the filed-rate doctrine a New Jersey federal court case concerning allegations of violations of the Racketeer Influenced and Corrupt Organizations Act based on a lender-placed insurance (LPI) scheme involving the use of kickbacks, including reinsurance premiums (Edward Leo v. Nationstar Mortgage LLC of Delaware, et al., No. 17-05839, D. N.J.).
CAMDEN, N.J. — A securities class action alleging misrepresentation in underwriting and risk management techniques and a reinsurance portfolio’s risks, was filed Feb. 11 in a New Jersey federal court against a reinsurance company and former executive officers by a plaintiff seeking to represent purchasers of the reinsurer’s common stock and seeking to pursue remedies under the Securities Exchange Act of 1934 (Michael Wigglesworth v. Maiden Holdings Ltd., et al., No. 19-05296, D. N.J.).
OMAHA, Neb. — A former employee for a federally reinsured crop insurer tells a Nebraska federal judge in a Feb. 8 opposition brief that an injunction for alleged breach of an employment agreement is not warranted because a noncompete agreement is overbroad and unenforceable (Farm Credit Services of America FLCA v. Kathy Mens, No. 19-14, D. Neb.).
TULSA, Okla. — In a lawsuit over alleged disparagement to a self-insurance products distributor during the promotion of a competitor’s products to school districts, an insurance agency and agent in a Feb. 8 motion ask an Oklahoma federal court to compel the trustees of Oklahoma School Risk Management Trust (OSRMT) to produce certain documents (The Sandner Group – Alternative Risk Solutions Inc. v. BancFirst Insurance Services Inc., et al., No. 18-0265, N.D. Okla.).
PORTLAND, Ore. — In an Oregon federal court lawsuit seeking recovery of $1.8 million for losses from medical claims, a health insurer in a Feb. 6 answer asserts affirmative defenses in response to a reinsurer’s counterclaims for breach of contract and unjust enrichment (Moda Health Plan Inc. v. Swiss Re Life & Health America Inc., No. 18-01917, D. Ore.).
NEW YORK — In 11 motions filed Feb. 4, parties argue under a theory of impermissible group pleading that a New York federal court should dismiss a fraud and conspiracy lawsuit filed by liquidators for two hedge funds over allegations that the funds with a net asset value of nearly $1 billion turned out not only to be insolvent but also to have liabilities between $400 million and $800 million (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).
SEATTLE — In a Washington federal court, a reinsurer on Feb. 6 denied allegations that it breached a contract with an association of Washington public entities regarding settlement of an underlying lawsuit over police officers’ alleged excessive force (Washington Cities Insurance Authority v. Ironshore Indemnity Inc., No. 19-00054, W.D. Wash.).
WASHINGTON, D.C. — In opposing reinsurers’ motion to dismiss, a financial service company argues to a District of Columbia federal court on Feb. 6 that the reinsurers seek to relitigate the same issues previously decided in its favor, “not once but twice” in their dispute over a $26 million arbitration award (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C., 2019 U.S. Dist. LEXIS 8059).
LINCOLN, Neb. — In a dispute over a promissory note executed pursuant to a reinsurance participation agreement (RPA), a Nebraska federal magistrate judge on Feb. 6 recommended denial of class certification as to a nationwide class of employers that purchased allegedly unlawful workers’ compensation insurance programs and signed related promissory notes (Applied Underwriters Inc. v. Top’s Personnel Inc., No. 15-90, D. Neb.).
WHITE PLAINS, N.Y. — A New York federal judge on Feb. 4 rejected a request to stay enforcement of an order requiring an investment group and its founder to produce documents under an arbitration panel’s summonses in a fraud case against a reinsurer and a hedge fund (Washington National Insurance Co. v. OBEX Group LLC, et al., No. 18-9693, S.D. N.Y.).
KANSAS CITY, Kan. — An investor argues in his Feb. 4 brief that he sufficiently asserts claims for violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act and unjust enrichment in a Kansas federal court action alleging that the investment companies depleted life insurers’ surplus assets by reinsuring risks with one another rather than using “arm’s-length reinsurance treaties” (Albert Ogles v. Security Benefit Life Insurance Co., et al., No. 18-02265, D. Kan.).
SAN DIEGO — In separate briefs filed Feb. 1, parties oppose a reinsurer’s request to intervene in their California federal court dispute over a $3.2 million judgment (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif.).
NEW YORK — In a breach of contract lawsuit regarding claims under facultative reinsurance contracts for losses of $2.5 million, a New York federal judge on Jan. 31 issued a civil case discovery plan and scheduling order (Continental Insurance Company of New Jersey, et al. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 18-4715, S.D. N.Y.).
WHITE PLAINS, N.Y. — Letters written to a New York federal judge on Jan. 31 address whether an investment group and its founder should be forced to produce documents under an arbitration panel’s summonses in a fraud case against a reinsurer and a hedge fund (Washington National Insurance Co. v. OBEX Group LLC, et al., No. 18-9693, S.D. N.Y.).