Mealey's Reinsurance
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June 27, 2019
Magistrate Judge Vacates Settlement Conference In Reinsurer’s $3.2M Dispute
SAN DIEGO — A California federal magistrate judge on June 25 vacated a settlement conference in a reinsurer’s fraudulent transfer dispute concerning a $3.2 million judgment due to a scheduling conflict from one of the parties involved in the dispute (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif.).
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June 27, 2019
Wisconsin Trial Judge Initiates Liquidation Proceeding Against Insurer
MADISON, Wis. — A Wisconsin trial judge on May 2 ordered Northwestern National Insurance Company of Milwaukee, Wisconsin (NNIC) into liquidation and named the state’s insurance commissioner as liquidator (In the matter of the liquidation of Northwestern National Insurance Company of Milwaukee, Wisconsin, No. 2019CV001209, Wis. Cir., Dane Co.).
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June 26, 2019
Insurer Seeks Stay Of Case With Reinsurers Due To Rehabilitation Proceedings
SAN JUAN, Puerto Rico — An insurer asks in a June 20 motion that a Puerto Rico federal judge issue a 90-day stay of its lawsuit against various reinsurers regarding losses from two hurricanes in light of the recent rehabilitation proceedings initiated against the insurer (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).
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June 26, 2019
Judge Addresses 2nd Round Of Motions To Dismiss RICO Claims In Fraud Case
NEW YORK — In a 65-page ruling, a New York federal judge on June 21 disposed of a second round of motions to dismiss a second amended complaint (SAC) brought by two hedge funds’ liquidators with regard to allegations in connection “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., 2019 U.S. Dist. LEXIS 104562).
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June 26, 2019
Runoff Insurer Opposes Reconsideration Of Ruling On Advancement Of Expenses
NEW YORK — A run-off insurer argues in a June 21 opposition filed in New York federal court that affiliates of a failed Ponzi scheme strain the language of investment management agreements (IMAs) to support their motion for reconsideration of a ruling on a counterclaim for advancement of expenses (In re: Platinum-Beechwood Litigation; Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658, and David Levy v. Senior Health Insurance Company of Pennsylvania, No. 19-3211, S.D. N.Y., 2019 U.S. Dist. LEXIS 81271).
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June 24, 2019
Judge Bars Government Investigations Evidence In Breach Of Duties Dispute
COLUMBIA, S.C. — In a case over a bank’s alleged breach of duties as trustee of a reinsurance trust for an insolvent insurer, a South Carolina federal judge on June 21 excluded evidence related to government investigations but refused to bar evidence concerning bank secrecy act/anti-money laundering compliance (BSA/AML) training (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C., 2019 U.S. Dist. LEXIS 103923).
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June 20, 2019
Insurer, Reinsurer Reach Decision To Dismiss Breach Of Contract Case
NEW YORK — An insurer and a reinsurer notified a New York federal judge on June 3 that they agreed to voluntarily dismiss their breach of contract lawsuit regarding claims under facultative reinsurance contracts for losses of $2.5 million (Continental Insurance Company of New Jersey, et al. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 18-4715, S.D. N.Y.).
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June 20, 2019
Reinsurer Cites New Decision To Renew Motion On Allocation, Collateral Estoppel Issues
UTICA, N.Y. — In light of a recent decision in a similar case, a reinsurer on June 18 moved in a New York federal court to renew motions for partial summary judgment on allocation and collateral estoppel issues in the reinsurer’s dispute with an insurer over settlements of asbestos claims (Utica Mutual Insurance Co. v. Century Indemnity Co., No. 13-995, N.D. N.Y.).
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June 20, 2019
Panel Affirms Dismissal Of RESPA Violation Claims Over Reinsurance Scheme
PHILADELPHIA — Finding a lawsuit brought by homeowners to be untimely, the Third Circuit U.S. Court of Appeals on June 19 upheld the dismissal of homeowners’ claims for violations of the Real Estate Settlement Procedures Act (RESPA) and unjust enrichment in their putative class action alleging a captive reinsurance scheme between banks and an affiliated reinsurer (Christopher Blake, et al. v. JPMorgan Chase Bank, N.A., et al., No. 18-2368, 3rd Cir., 2019 U.S. App. LEXIS 18370).
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June 10, 2019
COMMENTARY: Is An “Appraisal” An “Arbitration” And If So, What Issues Can Be Addressed And What Level Of Due Process Applies?
By Robert M. Hall
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June 19, 2019
Parties Ask To Dismiss Runoff Insurer’s Third-Party Aiding, Abetting Claims
NEW YORK — In seven separate motions, third-party defendants on June 14 asked a New York federal court to dismiss a runoff insurer’s third-party complaint alleging aiding-and-abetting fraud and breach of fiduciary duty in a “massive fraudulent scheme” for failing to make particularized allegations against them (Melanie L. Cyganowski v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).
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June 19, 2019
Judge Confirms In Part Award Over Reinsurance Participation Agreements
SAN FRANCISCO — In a dispute over fees allegedly owed under two reinsurance participation agreements (RPA), a California federal judge on June 17 confirmed in part a final arbitration award with the exception of the arbitrator’s order increasing the interest rate applied to sums owed under the first RPA (Mike Rose’s Auto Body Inc. v. Applied Underwriters Captive Risk Assurance Company Inc., No. 16-01864, N.D. Calif., 2019 U.S. Dist. LEXIS 100943).
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June 18, 2019
Judge: Final Determination On Crop Insurance Claims Is Not Arbitrary, Capricious
KANSAS CITY, Kan. — A final agency determination (FAD) made by government agencies that reinsure crop insurance policies was not arbitrary or capricious, a Kansas federal judge ruled June 14, denying a request to set aside that action (Kevin Struss, et al. v. U.S. Department of Agriculture, et al., No. 18-2184, D. Kan., 2019 U.S. Dist. LEXIS 99957).
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June 18, 2019
Insured Claims Financial Conflict Of Interest In Denial Of ERISA Benefits
BOSTON — An insured alleges in a June 14 complaint filed in a Massachusetts federal court that two insurers who are parties to an administration agreement and a reinsurance agreement engaged in a financial conflict of interest with regard to the denial of his long-term disability benefits under the Employee Retirement Income Security Act (Gary D. Powers v. Northwestern Mutual Life Insurance Co., et al., No. 19-11335, D. Mass.).
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June 18, 2019
Liquidator: Panel’s Attorney Fees Award To Reinsurer Exceeded Authority
CHICAGO — An insolvent insurer’s liquidator argues in a June 7 reply filed in Illinois federal court that a panel exceeded its authority when it issued attorney fees in its $437,000 arbitration award to a reinsurer (Catalina Holdings [Bermuda] Ltd. v. Jennifer Hammer, No. 18-5642, N.D. Ill.).
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June 18, 2019
Reinsurer Asks Federal Judge To Disburse $958,017 Of Registry Funds
SAN DIEGO — A reinsurer in a June 14 motion requests that a California federal judge in accordance with a turnover order disburse $958,017.66 of registry funds to it in a fraudulent transfer dispute concerning a $3.2 million judgment (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif.).
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June 17, 2019
Insurer Asks Court Not To Dismiss Reinsurance Billings Case Over Molestation Claims
BOSTON — Stating that a confirmation proceeding was not a “prior pending action,” an insurer in a June 13 brief opposes a request to dismiss a Massachusetts federal court case seeking to compel arbitration of a dispute over outstanding reinsurance billings for sexual molestation (Century Indemnity Co. v. Certain Underwriters at Lloyd’s London, No. 19-11056, D. Mass.).
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June 13, 2019
Fund Accuses Insurer Of Tortious Interference With Reorganization Scheme
NEW YORK — In a first amended complaint filed June 10 in a New York federal court, a hedge fund accuses an insurer of tortiously interfering with the fund’s contractual rights regarding notes purchased from a reinsurer by initiating reorganization proceedings under Irish law (ESM Fund I, L.P. v. Ambac Assurance UK Ltd., No. 19-5066, S.D. N.Y.).
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June 13, 2019
Judge Stays SEC’s Case Over Schemes To Defraud Insurers, Reinsurance Trusts
NEW YORK — A New York federal judge on June 10 stayed a lawsuit by the Securities and Exchange Commission that alleges that two individuals “perpetrated multiple schemes to defraud their advisory clients, which were insurance companies and reinsurance trusts” (Securities and Exchange Commission v. Alexander C. Burns, et al., No. 18-09477, S.D. N.Y.).
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June 12, 2019
Public Entities Oppose Reinsurer’s Request To Arbitrate Contract Dispute
SEATTLE — Citing a reinsurer’s failure to find any reinsurance exemption to Washington’s anti-arbitration regulation, an association of state public entities argues against the reinsurer’s request for arbitration of their breach of contract dispute regarding settlement of a lawsuit over police officers’ alleged excessive force in a June 10 brief in a Washington federal court (Washington Cities Insurance Authority v. Ironshore Indemnity Inc., No. 19-00054, W.D. Wash.).