DALLAS — A Texas federal magistrate judge on Feb. 18 recommended that an insurer be granted summary judgment on an insured’s declaratory relief claim over an increase in premium costs because the insured was given sufficient notice of the insurer’s assumption reinsurance agreement and another insurer’s rehabilitation plan (Don B. Chae v. American Fidelity Assurance Co., No. 19-157, N.D. Texas).
NEW YORK — A New York federal judge on Feb. 18 approved a request by an insurer in rehabilitation to return a deposit of $519,252.81 to the court’s registry in a case over procedures for advancement of fees and expenses under investment management agreements (IMAs) for third-party actions arising out of the 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.).
By Robert M. Hall
NEW YORK — Various summary judgment motions, including one from a receiver of a hedge fund on the issue of agency and imputation and one from an insurer in rehabilitation concerning a fraudulent conveyance claim, were filed Feb. 14 in a New York federal court in a case over misuse and mismanagement in a hedge fund scheme (In re Platinum-Beechwood Litigation, No. 18-6658, Melanie L. Cyganowski, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).
NEW YORK — Nine summary judgment motions were filed Feb. 14 in a New York federal court lawsuit brought by the liquidators of two hedge funds over the defendants’ role in “one of the most spectacular hedge fund collapses”; the defendants generally argue in the motions that the broad allegations against them do not support claims for fraud, breach of fiduciary duty and aiding and abetting (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).
SANTA ANA, Calif. — The third-party administrators for a self-insured employee benefit plan in a Feb. 13 answer in a California federal case deny trucking companies’ allegations that they negligently failed to obtain reinsurance coverage for the plans and assert affirmative defenses (A&I Transport, Inc., et al. v. KG Administrative Services, Inc., et al., No. 19-1992, C.D. Calif.).
BROOKLYN, N.Y. — A federal judge in New York on Feb. 13 stayed a lawsuit accusing a captive reinsurer and home health employers of a scheme to cheat home health aides out of lost wages and benefits pending the U.S. Supreme Court’s decision in a case concerning the issue of standing under the Employee Retirement Income Security Act (Ynes M. Gonzalez de Fuente, et al. v. Preferred Home Care of New York LLC, et al., No. 18-6749, E.D. N.Y.).
AUSTIN, Texas — A Texas court on Feb. 10 approved a $8.12 million settlement providing a three-way resolution of claims asserted by a special deputy receiver (SDR) for Capson Physicians Insurance Co. (CPIC), affiliates of CPIC and a fronting program’s insurer (The State of Texas v. Capson Physicians Insurance Co., No. D-1-GN-19-000723, Texas Dist., Travis Co., 250th Jud.).
NEW YORK — A New York federal judge on Feb. 7 granted a Japanese insurer’s request for more time to answer a reinsurer’s complaint seeking an order of specific performance under reinsurance and retrocession agreements over the release of excess assets in an operating account (TAKATA Reinsurance Inc. v. AIU Insurance Company Ltd., No. 19-04586, S.D. N.Y.).
NEW YORK — A New York federal judge on Feb. 7 ordered a reinsurer to arbitrate its dispute regarding asbestos loss billings with an insurer and a reinsurer based on an arbitration clause but stayed the dispute against another insurer pending arbitration (TIG Insurance Co. v. American Home Assurance Co., et al., No. 18-10183, S.D. N.Y., 2020 U.S. Dist. LEXIS 22639).
SAN JUAN, Puerto Rico — A liquidator for an insolvent insurer argues in a Feb. 6 omnibus reply brief to reinsurers that a Puerto Rico federal judge should alter a decision sending a $150 million hurricane loss case to arbitration because the dispute over assets owed under reinsurance agreements must begin in the liquidation court (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).
ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on Feb. 6 denied a farmer’s petition for rehearing en banc on its ruling that an arbitrator did not exceed his powers in denying a claim to a federally reinsured crop insurer based on the appraised value of a crop or by making a good farming practices determination (Terry R. Balvin v. Rain and Hail LLC, Nos. 18-3018 & 18-3061, 8th Cir.).
STATESVILLE, N.C. — A North Carolina federal judge on Feb. 3 refused to dismiss a breach of fiduciary duty case against a third-party health insurance administrator under the Employee Retirement Income Security Act over the administrator’s alleged failure to pay a plan participant’s medical expenses, which resulted in a loss to the plan when the expenses could not be claimed under a reinsurance policy (Technibilt Group Insurance Plan, et al. v. Blue Cross and Blue Shield of North Carolina, No. 19-79, W.D. N.C., 2020 U.S. Dist. LEXIS 19668).
OKLAHOMA CITY — A reinsurer in Feb. 5 motion asks an Oklahoma federal court for entry of a default against a telecommunications company and one of the company’s employees in a declaratory judgment action concerning coverage for an underlying personal injury lawsuit arising out of a vehicular collision because the parties failed to respond to the summons (Star Insurance Co. v. K&J Telecommunications, LLC, et al., No. 19-960, W.D. Okla.).
BATON ROUGE, La. — A Louisiana federal magistrate judge on Jan. 28 ordered an insurer to turn over reinsurance information he found to be relevant to an insured’s bad faith coverage dispute over property damage sustained from Hurricane Maria (Lamar Advertising Co. v. Zurich American Insurance Co., No. 18-1060, M.D. La., 2020 U.S. Dist. LEXIS 13891).
NEW YORK — A New York justice on Jan. 6 dismissed in part claims brought by a health care management company and nursing home affiliates in a lawsuit accusing insurers of engaging in “a willful scheme to subvert the insurance laws” in multiple states involving unapproved agreements, letters of credit and a captive reinsurance program that altered the rates in regulator-approved insurance policies (National Health Care Associates, Inc., et al. v. Liberty Mutual Insurance Co., et al., No. 650272/2018, N.Y. Sup., New York Co., 2020 N.Y. Misc. LEXIS 248).
BALTIMORE — A family trust asks a Maryland federal court on Jan. 28 to deny a motion by plaintiffs in consolidated cases concerning an alleged life insurance fraud scheme that shifted debt to reinsurers requesting final approval of a class action settlement unopposed by life insurers that “will make available over $40 million in settlement benefits” (Richard Dickman, et al. v. Banner Life Insurance Co., et al., Nos. 16-192 & 17-2026, D. Md.).
BOSTON — A reinsurer and an English reinsurer ask a Massachusetts federal court in a Jan. 28 motion for a stay of counterclaims against the English reinsurer concerning allocation and billing of environmental claims because a bankruptcy court order was issued against the English reinsurer (Certain London Market Company Reinsurers v. Lamorak Insurance Co., No. 18-10534, D. Mass.).
ST. JOSEPH, Mo. — On Feb. 3, a federal judge in Missouri granted in part an attorney’s motion for attorney fees as a lien against a farmer’s $1.4 million arbitration award against a federally reinsured crop insurer for corn crop losses but required the attorney to provide better itemization of his costs (Great American Insurance Co. v. Jonathan Russell, No. 16-9001, W.D. Mo.).
NEW YORK — A New York federal judge on Jan. 31 dismissed two defendants from allegations brought by the liquidators of two hedge funds regarding the defendants’ role “with one of the most spectacular hedge fund collapses” (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).