COLUMBIA, S.C. — A South Carolina federal judge held Feb. 28 that claims arising from a bank’s breach of duties as trustee of a reinsurance trust for an insolvent insurer are timely (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).
NEW YORK — A bank and an insurer on Feb. 21 voluntarily dismissed without prejudice their New York federal court lawsuit accusing underwriters of breaching a reinsurance contract regarding coverage for alleged breaches of securities lending agreements (Wells Fargo Bank N.A., et al. v. Lloyd’s Syndicate AGM 2488, et al., No. 18-12122, S.D. N.Y.).
SPRINGFIELD, Ill. — In a reinsurance coverage dispute over payment for mine subsidence damages, a railroad company argues in a Feb. 20 brief that an Illinois federal court should grant it summary judgment on alter-ego and de facto merger claims (Illinois Mine Subsidence Insurance Fund v. Union Pacific Railroad Co., No. 17-3199, C.D. Ill.).
LINCOLN, Neb. — In a dispute over a promissory note executed pursuant to a reinsurance participation agreement (RPA), the promissory note maker on Feb. 20 filed an objection to a Nebraska magistrate judge’s recommendation to deny class certification and asks that its proposed New Jersey class be certified (Applied Underwriters Inc. v. Top’s Personnel Inc., No. 15-90, D. Neb.).
KANSAS CITY, Kan. — In a dispute over an alleged reinsurance scheme, investment companies assert in Feb. 19 reply briefs to a Kansas federal court that an investor’s claims for violations of the Racketeer Influenced and Corrupt Organizations Act and unjust enrichment should be dismissed (Albert Ogles v. Security Benefit Life Insurance Co., et al., No. 18-02265, D. Kan.).
OMAHA, Neb. — A federally reinsured crop insurer says in a Feb. 18 reply brief that a Nebraska federal judge was correct to find that a former employee’s noncompete provision in an assignment, nonsolicitation and nondisclosure agreement was enforceable under Nebraska law (Farm Credit Services of America FLCA v. Kathy Mens, No. 19-14, D. Neb.).
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).
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.).
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.).
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.).
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.).
By Robert M. Hall
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.).
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.).
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.).
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.).
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.).
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.).
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.).
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).