WASHINGTON, D.C. — Objecting class members on Oct. 1 appealed the U.S. Court of Federal Claims’ judgments granting attorney fee awards for class counsel of insurers in a lawsuit seeking a declaratory judgment that the U.S. government owes the insurers millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program.
NEWARK, N.J. — A federal judge in New Jersey on Oct. 8 partly granted an insured’s motion to dismiss a breach of contract suit over attorney fees and costs, ruling that complete diversity of citizenship was not proved but granting leave to amend; the judge otherwise denied dismissal, rejecting the insured’s arguments based on the policy’s use of the word “(re)insurer.”
NEW YORK — A recent Second Circuit U.S. Court of Appeals ruling “does not address the issue to be determined in this case,” reinsurer Global Reinsurance Corporation of America says in an Aug. 6 letter to a panel of the court regarding its appeal in a long-running breach of contract case against insurer Century Indemnity Co. over defense costs for asbestos claims.
DENVER — Neither the U.S. Supreme Court in CIC Servs., LLC v. IRS nor a Tennessee federal judge’s recent ruling on remand of that case “‘expressed concern’ that the IRS was overzealously challenging captive insurance arrangements,” the government tells a 10th Circuit U.S. Court of Appeals panel in its Oct. 1 response to a notice of supplemental authority filed by a company challenging a ruling that it is not a tax-exempt insurer.
SAN DIEGO — Individuals who allege that they were sold counterfeited and nonexistent PregnancyCare insurance policies under “supposed captive reinsurance programs” filed a putative class complaint in California federal court on Oct. 11, claiming violation of California’s unfair competition law (UCL), negligent misrepresentation and unjust enrichment.
SANTA ANA, Calif. — Counsel for third-party administrators on Sept. 23 moved for leave to withdraw from a suit filed by trucking companies that alleges negligent failure to obtain reinsurance coverage for a self-insured employee benefit plan; the motion came after the federal court in California on Sept. 9 issued an order to show cause.
NEW YORK — A life insurance policyholder’s class action breach of contract challenge to a 2016 cost of insurance (COI) increase that came years after an indemnity reinsurance agreement is headed for a jury trial, with a New York federal judge issuing an Aug. 31 order setting it as a backup trial for the week of Dec. 6
RICHMOND, Va. — Eleven months after the last brief was filed in a family trust’s appeal of class certification and settlement approval in a consolidated case over an alleged life insurance fraud scheme that shifted debt to reinsurers, the Fourth Circuit U.S. Court of Appeals on Oct. 8 issued a tentative calendar order setting oral argument for the session running Dec. 6 to 10.
LOS ANGELES — An insurer sued reinsurers over billings for claims related to asbestos and other issues in California state court on Sept. 30, alleging breach of contract and seeking declaratory relief; the insurer also moved for an order to seal information related to prior settlement agreements.
FRESNO — A jury trial on allegations by a class of mortgagors that private mortgage insurers and a captive reinsurer violated anti-kickback provisions of the Real Estate Settlement Procedures Act (RESPA) will commence Feb. 15, according to an Oct. 5 notice in the case before a federal court in California.
SACRAMENTO, Calif. — A California joint power authority’s allegations against reinsurers lack factors that the California Supreme Court has relied on to extend tort recovery in the insurance context, a federal judge in California ruled Sept. 27, dismissing claims for tortious breach of the implied covenant of good faith and striking the authority’s prayers for punitive damages and attorney fees from the breach of contract complaint.
DETROIT — Allowing a second amended complaint after discovery in a dispute over billings for asbestos claims would be untimely and prejudicial and “would fundamentally change the nature and scope of this case,” a reinsurer argues in a Sept. 28 brief filed in a federal court in Michigan; in its Oct. 5 reply, the insurer contends that the request is proper because it has “consistently asserted ad damnum demands for fees” and seeks to conform its pleading to orally discovered facts.
SPRINGFIELD, Ill. — A railroad company’s claim for a declaration of no liability does not allege a case or controversy, and its bid for a declaratory judgment that res judicata bars reinsurer Illinois Mine Subsidence Insurance Fund (IMSIF) from bringing any more mine subsidence claim actions against it fails to state a claim, a federal magistrate judge in Illinois said in a report filed Sept. 29, recommending that the reinsurer’s motion to dismiss be granted only as to those claims.
GALVESTON, Texas — A federal judge in Texas on Sept. 29 granted dismissal of a health insurer’s statutory claims against a reinsurer, adopting in its entirety and without explanation a federal magistrate judge’s memorandum and recommendation that concluded that part of the Texas Insurance Code “broadly prohibits extracontractual claims against a reinsurer.”
YAKIMA, Wash. — A farmer and his company fraudulently obtained hundreds of thousands of dollars in crop insurance indemnity payments reinsured by the Federal Crop Insurance Corp. (FCIC) by falsely claiming losses to wheat crops, the government alleges in a complaint filed Sept. 28 in a federal court in Washington under the Financial Institutions Reform and Recovery Enforcement Act (FIRREA) and the False Claims Act.
ORLANDO, Fla. — An agreement to submit to nonbinding arbitration is not subject to the Federal Arbitration Act (FAA) but is “an express condition precedent to filing suit,” a federal judge in Florida ruled Sept. 28, staying a self-insured intergovernmental risk management association’s breach of contract dispute against a reinsurer pending completion of the process.
WILMINGTON, Del. — In a Sept. 24 letter to the parties, a Delaware vice chancellor laid out an eight-step process for resolving a motion to compel production of documents in a class action over allegations of a “deliberate, long-term scheme” to “bleed capital” from an insurance subsidiary that more than 1 million policyholders depend on for long-term care (LTC) insurance disability benefits.
DENVER — The U.S. Supreme Court decision in CIC Servs., LLC v. IRS and a federal judge in Tennessee’s recent ruling on remand of that case support its arguments, a company organized as a captive insurer asserts in a Sept. 27 notice of supplemental authority to a 10th Circuit U.S. Court of Appeals panel in a challenge to a U.S. Tax Court ruling that the company is not a tax-exempt insurer.
GALVESTON, Texas — Case law and context show that a section of the Texas Insurance Code “is simply a no-direct-action statute” and does not completely bar extracontractual claims against reinsurers, a health insurer argues in Sept. 27 objections to a recommendation by a federal magistrate judge in Texas that its statutory claims against a reinsurer be dismissed.
SAN FRANCISCO — In a Sept. 26 docket entry, the Ninth Circuit U.S. Court of Appeals filed notice of oral argument scheduled for Dec. 7 in a suit alleging that California state regulators abused their authority in obtaining a conservatorship against a workers’ compensation insurance carrier; the appeal followed a federal judge in California’s dismissal of the suit upon determining that the prior exclusive jurisdiction rule and abstention under Younger v. Harris apply.