Mealey's Reinsurance
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February 19, 2019
Panel Upholds Dismissal Of Case Over Reinsurance Participation Agreement
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).
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February 15, 2019
Employers, Reinsurer Say They Will Seek Dismissal Of Class Action Lawsuit
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.).
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February 15, 2019
Reinsurers Say Motion To Dismiss Is Not Improper ‘Third Bite At The Apple’
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.).
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February 14, 2019
Hedge Fund Liquidators: Specific Allegations Exist In Fraud, Conspiracy Case
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.).
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February 14, 2019
Mediation Ordered In Breach Of Contract Case Over Trust’s Role For Insolvent Insurer
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.).
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February 7, 2019
COMMENTARY: Vacating The Orders Of Arbitration Panels – Did The Arbitrators Exceed Their Powers?
By Robert M. Hall
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February 13, 2019
Parties Seek Dismissal Of RICO Case Over Alleged Kickbacks Of Reinsurance Premiums
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.).
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February 12, 2019
Securities Class Action Filed Against Reinsurer Over Misleading Statements
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.).
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February 12, 2019
Federally Reinsured Crop Insurer’s Preliminary Injunction Opposed
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.).
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February 12, 2019
Insurance Agency, Agent Seek Documents By Trustees In Disparagement Case
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.).
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February 8, 2019
Insurer Asserts Defenses To Reinsurer’s Breach Of Contract Counterclaim
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.).
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February 7, 2019
Investors Seek Dismissal Of Fraud, Conspiracy Case From Hedge Fund Liquidators
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.).
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February 7, 2019
Reinsurer Denies Breach Of Contract Claim Over Excessive Force Settlement
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.).
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February 7, 2019
Reinsurers Accused Of Seeking To Relitigate Issues In $26M Arbitration Dispute
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).
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February 7, 2019
Magistrate Judge Recommends Denial Of Class Certification In Workers’ Comp Insurance Case
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.).
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February 6, 2019
Judge Denies Stay Of Order Enforcing Summonses In Reinsurer’s Fraud Case
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.).
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February 6, 2019
Investor To Federal Court: RICO, Unjust Enrichment Claims Should Survive Dismissal
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.).
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February 6, 2019
Reinsurer’s Motion To Intervene In Creditor Dispute Is Opposed
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.).
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February 4, 2019
Discovery Plan, Scheduling Order Issued In Reinsurance Breach Of Contract Case
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.).
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February 4, 2019
Judge Receives Letters On Production Of Documents In Fraud Case Against Reinsurer
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.).