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Mealey's Reinsurance

  • April 12, 2019

    Judge Denies Damages Cap In Breach Of Duty Case To Reinsurance Trust For Insurer

    COLUMBIA, S.C. — A South Carolina federal judge on April 11 denied a bank’s motion for partial summary judgment seeking an imposed cap on damages in a dispute over the bank’s alleged breach of duties as trustee of a reinsurance trust for an insolvent insurer (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C., 2019 U.S. Dist. LEXIS 62308).

  • April 12, 2019

    Federal Judge Offers Reasons For Dismissal Of 2 Hedge Fund Liquidators’ Claims

    NEW YORK — A New York federal judge on April 11 issued reasons for a “bottom-line” order dismissing a first amended complaint’s claims for aiding and abetting breach of fiduciary duty and aiding and abetting fraud filed by two hedge funds’ liquidators (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y., 2019 U.S. Dist. LEXIS 62745).

  • April 11, 2019

    Reinsurers Seek Dismissal Or Stay Of Insurers’ Breach Of Contract Dispute

    CONCORD, N.H. — Reinsurers on April 9 asked a New Hampshire federal court to dismiss or stay insurers’ breach of contract case over $22 million in outstanding reinsurance billings because a lawsuit pending in a New Jersey state court can resolve all rights and obligations (United States Fire Insurance Co., et al. v. Equitas Insurance Ltd., et al., No. 18-01205, D. N.H.).

  • April 11, 2019

    Reinsurer Tells Federal Judge Of Intent To Appeal Arbitration Ruling

    HARRISBURG, Pa. — A reinsurer notified a Pennsylvania federal judge on April 9 of its intent to appeal an order compelling it and an insurer to arbitrate their reinsurance coverage dispute over lead paint losses arising in the Maryland area (Pennsylvania National Mutual Casualty Insurance Co. v. Everest Reinsurance Co., No. 18-mc-653 c/w No. 18-mc-656, M.D. Pa.).

  • April 10, 2019

    Parties Tell Court Positions On Class Certification Issue In Workers’ Insurance Comp Case

    SACRAMENTO, Calif. — A California federal judge was given a joint status report on April 8 by parties offering positions on a renewed motion for class certification in consolidated cases over a reinsurance participation agreement (RPA) entered into by California businesses when they bought a workers’ compensation program (Shasta Linen Supply Inc. v. Applied Underwriters Inc., et al., No. 16-158, Pet Food Express Ltd., et al. v. Applied Underwriters Inc., et al., No. 16-1211, E.D. Calif.).

  • April 10, 2019

    Alter-Ego, De Facto Merger Claims Debated In Reinsurance Dispute Over Mine Damages

    SPRINGFIELD, Ill. — Following the submission of post-trial briefs to an Illinois federal court, an insurance fund and a railroad company in April 8 response briefs further debate the issues of alter-ego and de facto merger with regard to payment for mine subsidence damages in their reinsurance coverage dispute (Illinois Mine Subsidence Insurance Fund v. Union Pacific Railroad Co., No. 17-3199, C.D. Ill.).

  • April 8, 2019

    Government, Farmer’s Wife Settle Property In Criminal Proceeding

    LEXINGTON, Ky. — A Kentucky federal judge on April 5 accepted a settlement agreement over real property between the U.S. government and the wife of a farmer being accused of making false statements for federally reinsured crops (United States v. Ronnie Jolly, No. 18-cr-32, E.D. Ky.).

  • April 5, 2019

    Employers Seek Dismissal Of Claims In Lost Wages Case Involving Insurance Scheme

    BROOKLYN, N.Y. — Employers on April 3 sought dismissal of certain claims in a New York federal court class action over an alleged captive insurance and reinsurance scheme in which home health aides allege that 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.).

  • April 4, 2019

    Jury Trial Scheduled In Reinsurance Dispute Over Police Excessive Force Case

    SEATTLE — In a breach of contract case between an association of Washington public entities and a reinsurer regarding settlement of a lawsuit over police officers’ alleged excessive force, a Washington federal judge on March 11 scheduled a jury trial for June 2020 (Washington Cities Insurance Authority v. Ironshore Indemnity Inc., No. 19-00054, W.D. Wash.).

  • April 4, 2019

    Jury Trial Scheduled On Counterclaim In Workers’ Comp Insurance Dispute

    LINCOLN, Neb. — In a workers’ compensation insurer’s dispute over a promissory note executed pursuant to a reinsurance participation agreement (RPA), a Nebraska federal magistrate judge on April 2 ordered that trial on a class action counterclaim is to commence next March (Applied Underwriters Inc. v. Top’s Personnel Inc., No. 15-90, D. Neb.).

  • April 4, 2019

    Funds’ Receiver Files Amended Complaint For Redress Over ‘Massive Fraudulent Scheme’

    NEW YORK — In a first amended complaint filed April 1 in a New York federal court, a receiver for funds seeks redress “for the innocent investors and creditors of her estate” damaged by unlawful and tortious acts with regard to a “massive fraudulent scheme masterminded by the now indicted and/or convicted insiders” of Platinum Partners Credit Opportunities Master Fund LP (PPCO funds) (Melanie L. Cyganowski, as equity receiver for Platinum Partners Credit Opportunities Master Fund LP, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).

  • April 4, 2019

    Judge Orders Reinsurer To Name Single Arbitrator In Asbestos Billings Case

    HARTFORD, Conn. — In a dispute over reinsurance billings for asbestos losses, a Connecticut judge on Feb. 13 directed a reinsurer to appoint a single arbitrator in response to an insurer’s demand and to proceed with forming a panel (Employers Insurance Co. of Wausau v. The Hartford, No. HHDCV186099158S, Conn. Super., Hartford Dist., 2019 Conn. Super. LEXIS 354).

  • April 3, 2019

    Reinsurance Broker: RICO Claims Filed By Homeowners Barred By Filed-Rate Doctrine

    TRENTON, N.J. — An insurance and reinsurance broker argues in its March 29 reply brief to a New Jersey federal court that the filed-rate doctrine bars homeowners’ claims in a case concerning allegations of violations of the Racketeer Influenced and Corrupt Organizations Act based on a lender-placed insurance (LPI) scheme involving kickbacks, including reinsurance premiums (Edward Leo v. Nationstar Mortgage LLC of Delaware, et al., No. 17-05839, D. N.J.).

  • April 3, 2019

    Federal Agencies: No Liability Owed To Farmers For 2015 Crop Loss

    DETROIT — In a Michigan federal court lawsuit filed by a putative class of farmers against crop insurers and the federal agencies that reinsure them, the agencies argue in their April 1 summary judgment motion that they are not liable for the farmers’ loss of revenue protection in 2015 (Gregory Ackerman, et al. v. U.S. Department of Agriculture, et al., No. 17-11779, E.D. Mich.).

  • April 3, 2019

    Protective Order Issued By Judge In Breach Of Contract Case Against Reinsurer

    DETROIT — In an insurer’s breach of contract case against a reinsurer over reinsurance billings for asbestos claims, a Michigan federal judge on April 1 issued a stipulated confidentiality agreement and protective order regarding confidential proprietary or trade secret information and information about insureds, including health in connection with their alleged asbestos exposure (Amerisure Mutual Insurance Co. v. Transatlantic Reinsurance Co., No. 18-11966, E.D. Mich.).

  • April 2, 2019

    Hedge Funds’ Liquidators File 2nd Amended Complaint Over Fraud

    NEW YORK — Two hedge funds’ liquidators filed a second amended complaint on March 29 after a New York federal judge previously dismissed claims for aiding and abetting breach of fiduciary duties, aiding and abetting fraud and unjust enrichment as to certain defendants (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • April 2, 2019

    Reinsurance Investment Company Sued For Refusing To Pay Incentive Payments

    BOSTON — A Bermuda reinsurance investment company and an affiliated company are accused in a March 28 first amended complaint filed in Massachusetts federal court of refusing to make incentive payments of $7.45 million to a former employee allegedly owed upon her termination of employment without cause (Alissa Fredricks v. Markel CATCo Investment Management Ltd., et al., No. 19-10331, D. Mass.).

  • April 1, 2019

    Judge Rules On Liability, Reimbursement Issues Between Reinsurer, Insurer

    SYRACUSE, N.Y. — A reinsurer is not liable for any additional monies to an insurer under a 1973 facultative reinsurance certificate, a New York federal judge held March 29, also finding that a voluntary payment doctrine bars the reinsurer from recovering loss and declaratory judgment expenses it has already paid the insurer under a 1977 facultative reinsurance certificate (Utica Mutual Insurance Co. v. Munich Reinsurance America Inc., Nos. 12-00196 & 13-00743, N.D. N.Y., 2019 U.S. Dist. LEXIS 53470).

  • March 29, 2019

    Panel Affirms Denial Of Reinsurer, Insurer’s Motion To Compel Arbitration

    SAN JOSE, Calif. — In a dispute regarding a program involving workers’ compensation insurance and a reinsurance participation agreement (RPA), a trial judge did not err in voiding an arbitration agreement included in a request to bind, a California appeals court held March 28, affirming denial of a motion to compel arbitration (Jackpot Harvesting Inc., et al. v. Applied Underwriters Inc., et al., No. H044953, Calif. App., 6th Dist., 2019 Cal. App. LEXIS 278).

  • March 28, 2019

    Rehabilitation Sought For Reinsurer By Delaware Insurance Commissioner

    WILMINGTON, Del. — The Delaware insurance commissioner on March 1 asked a state court to issue a rehabilitation order against reinsurer Scottish Re (U.S.) Inc. (SRUS) (Delaware ex rel. v. Scottish Re [U.S.] Inc., No. 2019-0175-AGB, Del. Chanc.).