WILMINGTON, Del. — A Delaware vice chancellor on Jan. 31 dismissed as untimely a class’s claim under the Delaware Uniform Fraudulent Transfer Act (DUFTA) regarding $395 million in dividends that a long-term care insurer paid from 2012 to 2014 (Richard F. Burkhart, et al. v. Genworth Financial Inc., et al., No. 2018-0691, Del. Chanc., 2020 Del. Ch. LEXIS 44).
SCRANTON, Pa. — In a breach of contract dispute, parties tell a Pennsylvania federal judge in a Jan. 20 stipulation of dismissal that they reached a settlement of the $1.1 million dispute that arises out of several insurance, reinsurance and indemnity agreements for a U.S. Custom Bonds program (Aegis Security Insurance Co. v. Kingsway Financial Services Inc., No. 16-1555, M.D. Pa.).
BOSTON — A Cayman Islands captive insurance company sued an underwriting management organization on Jan. 29 in a Massachusetts federal court, alleging fraudulent concealment and intention concerning the binding of a medical stop loss excess reinsurance contract (Wellforce Indemnity Company Ltd. v. Starline USA, LLC, No. 20cv10173, D. Mass.).
NEW YORK — A runoff insurer on Jan. 22 dismissed its appeal to the Second Circuit U.S. Court of Appeals regarding four orders over the advancement of fees and expenses under investment management agreements (IMAs) for third-party actions arising out of the runoff insurer’s initial fraud lawsuit over the mismanagement and misuse of $320 million (B Asset Manager L.P., et al. v. Senior Health Insurance Company of Pennsylvania, No. 19-4239, 2nd Cir.).
DALLAS — A Texas federal judge on Jan. 21 granted default judgment to a reinsurer on its claims for aiding and abetting breach of fiduciary duty and for tortious interference with contract with regard to unreturned premiums under auto insurance policies (Lincoln General Insurance Co. v. U.S. Auto Insurance Services, Inc., et al., No. 16-03198, N.D. Texas).
JASPER, Ala. — In six sexual misconduct lawsuits filed by former prison inmates, an Alabama federal judge on Jan. 23 dismissed claims in four of the lawsuits for declaratory judgment as creditors of an insurer’s rights under reinsurance agreements because there is no jurisdiction over the state law claims (Stacey Bridges v. J.C. Poe Jr., et al., No. 19-529, Charity Tessener v. J.C. Poe Jr., et al., No. 19-1314, Jessica Rainer v. J.C. Poe Jr., et al., No. 19-1392, Whitley Goodson v. J.C. Poe Jr., et al., No. 19-1399, Megan Dunn v. J.C. Poe Jr., et al., No. 19-1571, Allison Mann v. J.C. Poe Jr., et al., No. 19-1961, N.D. Ala., 2020 U.S. Dist. LEXIS 11240).
SAN JUAN, Puerto Rico — Reinsurers in Jan. 21 opposition briefs argue that a Puerto Rico federal judge should deny an insolvent insurer’s liquidator motion to alter a decision sending a $150 million hurricane loss case to arbitration because there was no manifest error with the ruling (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).
NEW YORK — The U.S. Department of Justice wrote to a New York federal judge on Jan. 17 updating him on the status of pending criminal proceedings that served as the reasons for a stay of the Securities and Exchange Commission’s lawsuit alleging that two individuals “perpetrated multiple schemes to defraud their advisory clients, which were insurance companies and reinsurance trusts” (United States v. Alexander C. Burns, et al., No. 18-9477, S.D. N.Y.).
DENVER — For an appeal in a dispute alleging a reinsurance scheme, life insurers and investment companies argue in separate Jan. 21 appellee briefs that the 10th Circuit U.S. Court of Appeals should affirm a ruling dismissing an investor’s claim under the Racketeer Influenced and Corrupt Organizations Act because that claim is reverse-preempted under the McCarran-Ferguson Act (Albert Ogles v. Guggenheim Investments, et al., No. 19-3154, 10th Cir.).
JASPER, Ala. — A federal judge in Alabama on Jan. 17 consolidated six lawsuits filed by former female prison inmates asserting sexual misconduct allegations against the city of Jasper and various officials and seeking a declaratory judgment as a judgment creditor of the city’s insurer’s rights under reinsurance agreements (Stacey Bridges v. J.C. Poe Jr., et al., No. 19-529, Charity Tessener v. J.C. Poe Jr., et al., No. 19-1314, Jessica Rainer v. J.C. Poe Jr., et al., No. 19-1392, Whitley Goodson v. J.C. Poe Jr., et al., No. 19-1399, Megan Dunn v. J.C. Poe Jr., et al., No. 19-1571, Allison Mann v. J.C. Poe Jr., et al., No. 19-1961, N.D. Ala.).
RIVERSIDE, Calif. — An insurer and a reinsurer tell a California federal judge in Jan. 16 joint status report that they have selected individual arbitrators and are choosing an umpire for arbitration of a breach of contract case over $8.6 million in equipment breakdown claims (Nationwide Agribusiness Insurance Co. v. The Hartford Steam Boiler Inspection and Insurance Co., No. 19-00531, C.D. Calif.).
NEW YORK — An insurer in Jan. 15 brief asks a New York federal court for summary judgment on its claims against a reinsurer for breach of its obligation to post $1.6 million in collateral under a reinsurance agreement and to declare that the reinsurer remains required to post that collateral (AmTrust North America Inc. v. Signify Insurance Ltd., et al., No 18-3779, S.D. N.Y.).
NEW YORK — A New York federal judge on Jan. 13 dismissed a third-party defendant from a runoff insurer’s allegations of aiding and abetting in a Ponzi-like scheme where fraudulent misrepresentations were made to gain investment control over $320 million of the runoff insurer’s reserves (In re Platinum-Beechwood litigation, No. 18-6658; Senior Health Insurance Company of Pennsylvania v. PB Investment Holdings Ltd., et al., No. 18-12018, S.D. N.Y.).
NEW YORK — While hedge fund liquidators’ counsel “acted in blatant disregard” in an opposition brief to a corporate insider’s motion to dismiss claims concerning the hedge fund’s misuse and mismanagement, a New York federal judge on Jan. 13 denied monetary sanctions on “the possibility that counsel were simply carried away by overzealousness rather than acting in bad faith” (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., 2020 U.S. Dist. LEXIS 5676).
NEW YORK — A New York federal bankruptcy judge on Jan. 13 closed an Irish reinsurer’s bankruptcy proceeding that recognized a foreign main liquidation proceeding concerning an alleged $1 billion deficit (In re Ballantyne Re Plc, Chapter 15, No. 19-11490, S.D. N.Y. Bkcy.).
NEW YORK — Insurers on Jan. 10 told a New York federal court that they are voluntarily stipulating to the dismissal of an investment company from their third-party lawsuit, which arises out of a dispute originally filed by a receiver seeking redress for damages from of a “massive fraudulent scheme” involving hedge funds (In re Platinum-Beechwood Litigation, No. 18-6658, Washington National Insurance Co., et al. v. Mark Nordlicht, et al., No. 18-12018, S.D. N.Y.).
NEW YORK — The U.S. government argues in a Jan. 7 opening brief that the Second Circuit U.S. Court of Appeals should reinstate securities fraud convictions against two former executives of a hedge fund with regard to their alleged role in the hedge fund’s scheme to transfer assets to a reinsurance company and related entities to defraud bondholders in an oil and gas company (United States of America v. Uri Landesman, et al., No. 19-3207 c/w 19-3209, 2nd Cir.).
NEW YORK — A runoff insurer on Dec. 19 appealed to the Second Circuit U.S. Court of Appeals four orders dealing with the advancement of fees and expenses under investment management agreements (IMAs) for third-party actions arising out of the runoff insurer’s initial fraud lawsuit over the mismanagement and misuse of $320 million (B Asset Manager L.P., et al. v. Senior Health Insurance Company of Pennsylvania, No. 19-4239, 2nd Cir.).
HARRISBURG, Pa. — A federal judge in Pennsylvania on Jan. 7, “effective immediately,” lifted a stay in a reinsurance dispute over lead paint losses so that an insurer and its reinsurer can select a new arbitration panel to decide whether the arbitration should be consolidated with another arbitration involving two other reinsurers (Pennsylvania National Mutual Casualty Insurance Co. v. Everest Reinsurance Co., No. 18-mc-653, M.D. Pa.).
SAN FRANCISCO — In a dispute over payment for workers’ compensation insurance, a California appeals panel on Jan. 7 dismissed an appeal regarding a trial court’s statement of decision (SOD) that neither side proved damages elements in breach of contract claims because the SOD is not a judgment or an appealable order (Warwick California Corp., et al. v. Applied Underwriters, Inc., et al., No. A155523, Calif. App., 1st Dist., Div. 4, 2020 Cal. App. LEXIS 13).