PHILADELPHIA — Homeowners argue in their Jan. 18 reply brief to the Third Circuit U.S. Court of Appeals that a Pennsylvania federal judge erred in dismissing 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.).
WHITE PLAINS, N.Y. — An arbitration panel’s summonses against an investment group and its founder in a fraud case against a reinsurer and a hedge fund were enforced by a New York federal judge on Jan. 18, granting an insurer’s petition to enforce (Washington National Insurance Co. v. OBEX Group LLC, et al., No. 18-9693, S.D. N.Y., 2019 U.S. Dist. LEXIS 9300).
NEW YORK — A receiver for an insolvent insurer in a Jan. 18 letter tells a New York federal judge to ignore a notice of appeal in a dispute over reinsurance payments for construction site injuries because the appeal was not filed by the insurer (Certain Underwriting Members of Lloyds of London, et al. v. Insurance Company of the Americas, Nos. 16-323 & 16-374, S.D. N.Y.).
SAN DIEGO — A California federal judge on Jan. 16 refused to reconsider a ruling allowing a continuance of pretrial conference and related dates in a reinsurer’s dispute over a $3.2 million judgment (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif.).
TULSA, Okla. — A distributor of self-insurance products alleges in a third amended complaint filed Jan. 16 in an Oklahoma federal court that an insurance agency and agent disparaged it with a false and misleading representation of its reinsurance problems during the promotion of a competitor’s products to Oklahoma school districts (The Sandner Group – Alternative Risk Solutions Inc. v. BancFirst Insurance Services Inc., et al., No. 18-0265, N.D. Okla.).
NEW YORK — A receiver for funds seeks redress in a Dec. 19 complaint filed in a New York federal court for 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.).
WASHINGTON, D.C. — Denying reconsideration of an earlier ruling, a District of Columbia federal judge on Jan. 17 allowed a financial service company to proceed on breach of an implied-in-fact contract, promissory estoppel and unjust enrichment claims against reinsurers in a 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).
SPRINGFIELD, Ill. — An Illinois federal magistrate judge on Jan. 16 granted in part several motions to exclude expert testimony regarding a corporate status issue in a reinsurance coverage dispute over payment for mine subsidence damages (Illinois Mine Subsidence Insurance Fund v. Union Pacific Railroad Co., No. 17-3199, C.D. Ill., 2019 U.S. Dist. LEXIS 7355).
HONOLULU — After a second amended complaint alleging unfair or deceptive acts or practices in the placement of insurance through “illegal kickback or captive reinsurance arrangements” was dismissed in part, a homeowner, on behalf of herself and others, on Jan. 15 filed a third amended complaint in a Hawaii federal court (Julia Wieck v. CIT Bank, N.A., et al., No. 16-00596, D. Hawaii).
KANSAS CITY, Kan. — Insurance and investment companies filed separate motions on Jan. 14 to dismiss Racketeer Influenced and Corrupt Organizations (RICO) Act and unjust enrichment claims in a Kansas federal court action alleging that they depleted life insurers’ surplus assets by reinsuring risks with one another rather than using “arm’s-length reinsurance treaties” (Albert Ogles v. Security Benefit Life Insurance Co., et al., No. 18-02265, D. Kan.).
JAMAICA, N.Y. — In a case addressing whether reinsurance participation agreements (RPAs) are illegal and unlawful, a New York justice on Nov. 14 allowed defendants to assert a counterclaim seeking damages for breach of the RPAs and policies and a declaration that the RPAs are valid, enforceable contracts (The Energy Conservation Group LLC, et al. v. Applied Underwriters Inc., et al., No. 710762 2015, N.Y. Sup., Queens Co., 2018 N.Y. Misc. LEXIS 6746).
LINCOLN, Neb. — A note holder to a promissory note executed pursuant to a reinsurance participation agreement (RPA) in a Jan. 11 filing opposes a request in Nebraska federal court for class certification of a nationwide class of employers who purchased unlawful workers’ compensation insurance programs and signed related promissory notes because the counterclaims are not typical of a class (Applied Underwriters Inc. v. Top’s Personnel Inc., No. 15-90, D. Neb.).
NEW YORK — An investor on Jan. 11 joined other motions seeking to dismiss a fraud and conspiracy lawsuit filed in a New York federal court by the liquidators for two hedge funds concerning 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.).
BALTIMORE — Underwriters subscribing to a facultative reinsurance certificate in a Jan. 11 filing oppose a request to compel arbitration or dismiss their Maryland federal court lawsuit seeking a declaration that a reinsurance contract is void ab initio based on insurers’ failure to disclose certain information in their application (Certain Interested Underwriters at Lloyd’s London, subscribing to the facultative reinsurance certificate 2017100003409 v. American Casualty Company of Reading, Pa., et al., No. 18-02972, D. Md.).
RICHMOND, Va. — In a dispute over billings for a workers’ compensation program, the Fourth Circuit U.S. Court of Appeals affirmed Jan. 14 that a reinsurance participation agreement (RPA) is an insurance contract for purposes of Virginia Code Section 38.2-312 (Minnieland Private Day School v. Applied Underwriters Captive Risk Assurance Company Inc., 17-2385, 4th Cir., 2019 U.S. App. LEXIS 1188).
DENVER — A Colorado federal judge on Jan. 9 stayed an insured’s lawsuit over the alleged failure to comply with a universal life policy’s terms pending a reinsurer’s appeal on the denial of its motion to intervene (Robert Barnes v. Security Life of Denver Insurance Co., No. 18-718, D. Colo., 2019 U.S. Dist. LEXIS 4037).
NEW YORK — Regarding coverage for alleged breaches of securities lending agreements, a bank and an insurer accuse underwriters on Dec. 21 in a New York federal court of breaching a reinsurance contract (Wells Fargo Bank N.A., et al. v. Lloyd’s Syndicate AGM 2488, et al., No. 18-12122, S.D. N.Y.).
CONCORD, N.H. — Insurers filed an amended complaint on Jan. 7 adding additional reinsurers as defendants in their breach of contract lawsuit in a New Hampshire federal court in which they seek to recover $22 million in outstanding reinsurance billings (United States Fire Insurance Co., et al. v. Equitas Insurance Ltd., et al., No. 18-01205, D. N.H.).
PORTLAND, Ore. — In a health insurer’s Oregon federal court lawsuit seeking to recover $1.8 million for losses, a reinsurer in a Jan. 7 answer denies allegations that it breached a reinsurance contract (Moda Health Plan Inc. v. Swiss Re Life & Health America Inc., No. 18-01917, D. Ore.).
NEW YORK — In a dispute over the alleged mismanagement and misuse of $320 million, a run-off insurer’s second amended complaint should be dismissed, a reinsurer and its entities argue in a Jan. 7 motion in a New York federal court because the run-off insurer fails to sufficiently allege claims arising out of a breach of fiduciary duty and fraud (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658, S.D. N.Y.).