ALBANY, N.Y. — A New York federal judge on April 30 issued a trial order, scheduling a jury trial to begin June 21 in a dispute between an insurer and a reinsurer over whether defense costs paid on behalf of an insured for asbestos liabilities are covered under the reinsurer’s policies.
NEW YORK — An insurer and reinsurer’s second amended complaint filed in New York federal court seeking to enforce a promissory note worth more than $4.6 million tied to a reinsurance arrangement for an in-force book of disability income business should not be dismissed because the insurer and reinsurer have sufficiently alleged facts in support of their claims that the investors breached their contractual and fiduciary duties under a promissory note, the insurer and reinsurer claim in an April 26 response to the investors’ motion to dismiss.
NEWARK, N.J. — In an April 27 amended complaint filed in New Jersey federal court, an insured claims that its insurers, one of which is a subsidiary of a reinsurance group, breached their contracts by refusing to pay for an environmental investigation and remediation at an insured property.
HARTFORD, Conn. — A Connecticut judge on March 19 determined that a reinsured is entitled to only nominal damages of $1 because the reinsured failed to prove that the amounts billed to a reinsurer were consistent with the reinsurer’s obligations under the reinsurance contract and failed to establish how the billed amounts were calculated under the terms of the reinsurance contract.
NEW YORK — A New York appellate panel on April 20 reversed a trial court’s dismissal of breach of contract and breach of fiduciary duty claims alleged against the administrator of reinsurance trusts after determining that a question of fact exists as to whether the administrator was liable for losses sustained to the reinsurance trusts and whether the administrator owed fiduciary duties to the beneficiaries of the reinsurance trusts.
BOSTON — Summary judgment should be granted in favor of reinsurers involved in a reinsurance billings dispute over the insurer’s allocation of a $120 million environmental claims settlement because there is no dispute that the insurer’s reinsurance allocation contradicts the exposures that the insurer actually settled, the reinsurers contend in an April 14 reply in support of a motion for summary judgment filed in Massachusetts federal court.
CINCINNATI — The majority of a Sixth Circuit U.S. Court of Appeals panel on April 28 reversed a district court’s dismissal of a putative class action filed by farmers against crop insurers and the federal agencies that reinsure crop insurers after determining that the district court incorrectly concluded that the pricing mechanisms for dry-bean crop insurance in Michigan and Minnesota were identical.
BIRMINGHAM, Ala. — An Alabama federal judge on April 29 remanded a receiver’s suit seeking a coverage declaration for underlying asbestos personal injury suits filed against a dissolved thermal insulation contractor after determining that the insurance broker for the insured contractor was not fraudulently joined because the receiver stated viable claims against the broker related to insurance and reinsurance policies allegedly issued to the insured contractor.
LOS ANGELES — A California federal judge on April 14 denied a motion to dismiss filed by the parent companies of a reinsurer after determining that the insurers sufficiently alleged facts in support of their claims for intentional interference with contractual relation and inducing breach of contract stemming from the insurers’ reinsurance billings.
MIAMI — A Florida federal judge on April 23 denied a motion to dismiss filed by an insurer and reinsurers after determining that the insureds adequately stated claims for breach of contract and tortious interference of contract arising out of a coverage dispute for property damage caused by Hurricane Dorian in the Bahamas.
TAMPA, Fla. — A Florida federal judge on April 27 overruled a self-insured intergovernmental risk management association’s objections to a magistrate judge’s recommendation that summary judgment be entered in favor of a reinsurer because the magistrate judge correctly found that the reinsurer owed no coverage for underlying wrongful acts claims for which the self-insured sought coverage.
SAN JUAN, Puerto Rico — A Puerto Rico federal judge on April 19 denied a motion for a preliminary injunction filed by a former employee of Willis Re Inc. in a dispute over an employment agreement’s nonsolicitation clause after determining that the agreement’s nonsolicitation clause is enforceable because Florida law, and not Puerto Rico law, applies to the dispute.
NEW YORK — A federal judge in New York on March 15 granted an insurer’s motion to stay a $49,346,803 judgment entered against it in a decades-old environmental contamination coverage dispute in light of a recent liquidation order, finding that Pennsylvania is a reciprocal state under the New York’s Uniform Insurers Liquidation and, therefore, the liquidation order is enforceable and warrants staying the lawsuit.
WASHINGTON, D.C. — A dispute subclass of insolvent insurers and the U.S. government on April 13 jointly moved to divide a dispute subclass into two subclasses and requested that the U.S. Court of Federal Claims enter a $23,301,140.37 judgment in favor of the newly created subclass in the insurers’ lawsuit seeking declaratory judgment that the government owes them millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program.
By Robert M. Hall
WASHINGTON, D.C. — A Bermuda reinsurance and insurance company argues in an April 12 renewed motion to dismiss that an Employee Retirement Income Security Act lawsuit seeking damages for the company’s alleged failure to make $934 million in withdrawal liability payments to a pension plan must be dismissed because the reinsurer is not subject to general jurisdiction of the U.S. District Court for the District of Columbia.
CEDAR RAPIDS, Iowa — Following a settlement in a suit filed in Iowa federal court by a trustee for an irrevocable trust who claimed that a life insurer substantially increased its costs on universal life insurance policies and imposed monthly deduction rate increases to recover prior losses from reinsurance transactions, the parties on April 9 filed a stipulation dismissing the suit with prejudice and with each side bearing their own costs.
LINCOLN, Neb. — A Nebraska trial court erred in dismissing a food production company’s suit arising out of a dispute over a workers’ compensation reinsurance participation agreement (RPA), the Nebraska Court of Appeals said April 6 in reversing and remanding the trial court’s dismissal after determining that the trial court should have stayed the suit, rather than dismissing it, to allow the insured to determine whether New York is an available forum for the suit.
STATESVILLE, N.C. — A North Carolina federal judge on April 5 rescheduled a bench trial for June 14 in a dispute over whether a third-party health insurance administrator breached its fiduciary duties under the Employee Retirement Income Security Act by failing to process and pay a health plan participant’s expenses when the expenses could not be claimed under a reinsurance policy.
PHILADELPHIA — A reinsurer breached certificates of facultative reinsurance by failing to pay more than $800,000 in billings submitted by an insurer for the settlement of underlying asbestos bodily claims paid by the insurer on behalf of an insured, the insurer claims in an April 8 complaint filed in Pennsylvania state court.