PHOENIX — In a 140-page class action complaint filed Dec. 7, plaintiffs are seeking damages in an Arizona federal court for participants hurt by an alleged captive insurance scheme and unlawful conspiracy involving captive insurance strategies that would provide non-tax benefits (Dimitri Shivkov, et al. v. Artex Risk Solutions Inc., et al., No. 18-cv-04514, D. Ariz.).
NEW YORK — In a dispute over the alleged mismanagement and misuse of $320 million, a New York federal judge on Dec. 7 dismissed in part a run-off insurer’s tort and quasi-contract claims against a reinsurer and its entities but allowed the insurer to amend its complaint to assert additional allegations for some of the claims (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658, S.D. N.Y., 2018 U.S. Dist. LEXIS 206536).
OMAHA, Neb. — In a dispute over an alleged breach of a reinsurance participation agreement (RPA), a Nebraska federal judge on Dec. 6 found that genuine issues of material fact exist regarding the amount due pursuant to the parties’ agreement, precluding summary judgment (Applied Underwriters Captive Risk Assurance Company Inc. v. Beemac Driver Management LLC, et al., No. 16-382, D. Neb., 2018 U.S. Dist. LEXIS 205825).
NEW YORK — In a dispute over reinsurance payments for construction site injuries, a New York federal judge on Dec. 6 said that an insolvent workers’ compensation insurer and British underwriters agreed to settle following a ruling by the Second Circuit U.S. Court of Appeals on an order vacating $1.5 million award (Certain Underwriting Members of Lloyds of London, et al. v. Insurance Company of the Americas, Nos. 16-323 & 16-374, S.D. N.Y.).
WASHINGTON, D.C. — In a dispute over a $26 million arbitration award, reinsurers in a Dec. 5 motion request that a District of Columbia federal judge reconsider his ruling allowing a financial services company to amend its complaint to assert claims against them for breach of an implied-in-fact contract, promissory estoppel and unjust enrichment (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C.).
NEW YORK — In affirming the dismissal of breach of contract and bad faith claims, the Second Circuit U.S. Court of Appeals on Dec. 6 agreed with a lower judge that an insurer’s settlement of a flood damage claim arising out of construction work and its reimbursement under a captive reinsurance agreement did not breach its contract to insureds (Keller Foundations LLC, et al. v. Zurich American Insurance Co., No. 18-1280, 2nd Cir., 2018 U.S. App. LEXIS 34345).
OKLAHOMA CITY — In an administrative closing order, an Oklahoma federal judge on Dec. 3 noted that reinsurance intermediaries and the receiver for an insolvent insurer have reached a settlement as to the receiver’s lawsuit alleging negligence in reinsurance services provided to the insurer (Oklahoma, et al. v. Axiom Re LP, et al., No. 17-0484, W.D. Okla.).
SAN FRANCISCO — Citing “persuasive prior decisions,” the First District California Court of Appeal, Division Four, on Dec. 4 affirmed the denial of a reinsurer’s motion to compel arbitration under a reinsurance participation agreement (RPA) (Luxor Cabs Inc., et al. v. Applied Underwriters Captive Risk Assurance Co., et al., No. A147962, Calif. App., 4th Dist., Div. 4, 2018 Cal. App. Unpub. LEXIS 8223).
LOS ANGELES — Rejecting an insurer’s petition to proceed with a single arbitrator and a single umpire, a California federal judge on Dec. 3 ordered a reinsurer and the insurer to name umpires in accordance with a reinsurance treaty’s arbitration clause (Employers Insurance Company of Wausau v. The Hartford, No. 18-07240, C.D. Calif., 2018 U.S. Dist. LEXIS 205345).
HONOLULU — After a homeowner’s second amended complaint alleging unfair or deceptive acts or practices in the placement of insurance through “illegal kickback or captive reinsurance arrangements” was dismissed in part, a Hawaii federal magistrate judge on Nov. 28 ordered a settlement conference (Julia Wieck v. CIT Bank, N.A., et al., No. 16-00596, D. Hawaii).
NEW YORK — A New York federal judge on Nov. 29 stayed a reinsurer’s summary judgment motion and an insurer’s partial summary judgment motion regarding a late notice defense (Endurance Assurance Corp. v. Florists’ Mutual Insurance Co., et al., No. 16-09955, S.D. N.Y.).
DETROIT — A special master on Nov. 29 recommended that a Michigan federal court should deny an insurer’s motion for bifurcation of discovery in a breach of contract case against a reinsurer over reinsurance billings for asbestos claims (Amerisure Mutual Insurance Co. v. Transatlantic Reinsurance Co., No. 18-11966, E.D. Mich.).
UTICA, N.Y. — In the “latest chapter in a long-running dispute” between a reinsurer and insurer, a New York federal judge on Nov. 30 declined the reinsurer’s motion to reconsider an earlier ruling on issues of collateral estoppel and standing in the parties’ dispute over settlements of asbestos claims (Utica Mutual Insurance Co. v. Century Indemnity Co., No. 13-995, N.D. N.Y., 2018 U.S. Dist. LEXIS 202819).
NEW YORK — Recognizing an exception to the doctrine of functus officio where an arbitration award is ambiguous, the Second Circuit U.S. Court of Appeals on Nov. 28 held that arbitrators retained their authority to clarify an award requiring a reinsurer to pay up to an additional $18 million in reinsurance proceeds to an insurer (General Re Life Corp. v. Lincoln National Life Insurance Co., No. 17-2496, 2nd Cir., 2018 U.S. App. LEXIS 33340).
BROOKLYN, N.Y. — Home health aides filed a class action complaint in a New York federal court on Nov. 27 against their employers and a reinsurer of their employee benefit plan, alleging that 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.).
SAN DIEGO — In a dispute over a $3.2 million judgment, a principal to an insurance services company argues to a California federal court in a Nov. 21 brief that a reinsurer offers no evidence on its claim of a fraudulent transfer, so seizure of her home or proceeds from the sale of it should be denied (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif.).
NEW YORK — In a Nov. 14 reply brief to its summary judgment motion and opposition brief to a partial summary judgment motion, a reinsurer tells a New York federal court that an insurer was required to report a claim in 2010 but instead provided notice six years too late (Endurance Assurance Corp. v. Florists’ Mutual Insurance Co., et al., No. 16-09955, S.D. N.Y.).
NEW YORK — A reinsurer and its entities argue in a Nov. 5 brief that a New York federal court should dismiss a run-off insurer’s tort and quasi-contract claims because the case over the alleged mismanagement and misuse of $320 million is one for breach of contract (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-06658, S.D. N.Y.).
WASHINGTON, D.C. — The Student Loan Ombudsman Establishment and Servicing Regulation Amendment Act of 2016, known as D.C. Law 21-214, is preempted under principles of conflict preemption as it relates to servicing of certain student loans but not for loans that are federally reinsured, a District of Columbia federal judge ruled Nov. 21 (Student Loan Servicing Alliance v. District of Columbia, et al., No. 18-0640, D. D.C., 2018 U.S. Dist. LEXIS 198774).
DENVER — A reinsurer’s request to intervene in an insured’s lawsuit against a life insurer over the alleged failure to comply with the policy’s terms was denied Nov. 21 by a Colorado federal judge because the reinsurer failed to establish inadequate representation (Robert Barnes v. Security Life of Denver Insurance Co., No. 18-718, D. Colo., 2018 U.S. Dist. LEXIS 198586).