Mealey's Reinsurance
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October 30, 2024
Arbitration Bid Fought In Reinsurance Billing Row Involving MOU
LOS ANGELES — Urging a California federal court to reject an arbitration bid in a lawsuit over reinsurance billings arising from asbestos bodily injury claims, an insurer contends that the abstention doctrine doesn’t apply and that the arbitration clause is in a different agreement than the one at issue and doesn’t include the present billing dispute.
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October 30, 2024
Court Gets Updates On Objections To Proposals In Reinsurer’s Liquidation
WILMINGTON, Del. — Delaware Chancery Court has been updated on the status of disputes over four proof of claim (POC) procedures the receiver for life and health reinsurer Scottish Re (U.S.) Inc. (SRUS) proposed for its liquidation, with the receiver filing an acknowledgement “that clarifies and should resolve several aspects which prompted objections” and certain cedents and retrocessionaires listing issues that they say “remain unresolved.”
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October 30, 2024
Reinsurance Broker Wins Discovery Stay In Suit Over Vesttoo Collapse Losses
DALLAS — Granting a discovery stay in a breach of contract suit over losses associated with the collapse of Vesttoo Ltd. pending resolution of a dismissal bid, a Texas federal judge said that “under the circumstances” the stay “could streamline” resolution of the case and will not prejudice the plaintiff.
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October 29, 2024
Indiana Appeals Panel Reverses Ruling For Employer In Attorney Fees Dispute
INDIANAPOLIS — In an unpublished memorandum decision reversing a state court’s order, an Indiana Court of Appealspanel ruled in part that an employer that participates in the Indiana Assigned Risk Reinsurance Plan didn’t exhaust its administrative remedies because it had not requested appellate attorney fees and prejudgment interest from the plan administrator.
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October 28, 2024
Docs Put On Record After Oral Argument In ERISA Pension Risk Transfer Case
GREENBELT, Md. — After oral argument on the only fully briefed dismissal motion among the similar recent putative class actions challenging pension risk transfers (PRTs) under the Employee Retirement Income Security Act, Lockheed Martin Corp. filed 10 documents at the direction of a Maryland federal judge.
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October 28, 2024
More Briefing Ordered In Microcaptive Case Involving Economic Substance Doctrine
WASHINGTON, D.C. — A U.S. Tax Court judge who is presiding over consolidated cases involving purported microcaptive insurance companies and considering the “economic substance doctrine” in regard to the remaining issue of accuracy-related penalties has directed the parties to file simultaneous briefs by Dec. 19.
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October 24, 2024
Timely Notice, Other Issues Disputed In Reinsurer’s 5th Circuit Appeal
NEW ORLEANS — Contending in its appellee brief that the trial court “followed its obligation to effectuate the parties’ intent,” an insurer urged the Fifth Circuit U.S. Court of Appeals to uphold a $2,866,423.97 judgment against a reinsurer that includes attorney fees.
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October 23, 2024
Reconsideration Of Dismissal Sought In Crop Insurance Extracontractual Damages Row
COOKEVILLE, Tenn. — Arguing that dismissal of their suit seeking extracontractual damages from a crop insurer “was incorrect and premature” because a related suit against federal regulators remains pending, farmers moved in Tennessee federal court for reconsideration of the ruling against them.
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October 23, 2024
Extension Again Granted In $1B RICO Insurance Fraud Scheme Involving Mogul
RALEIGH, N.C. — Without explanation, a North Carolina federal judge granted defendants’ third motion for an extension to answer an amended complaint in a suit accusing them of Racketeer Influenced and Corrupt Organizations Act (RICO) violations related to their purported participation in a $1 billion scheme to defraud now-insolvent insurers once owned by former insurance mogul Greg Lindberg.
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October 23, 2024
$21K Bill Of Costs Filed In Case With $576M Judgment Against Insurance Magnate
GREENSBORO, N.C. — Life insurer Universal Life Insurance Co. (ULICO) filed a $21,963.01 bill of costs in a North Carolina federal court in a suit with a judgment requiring insurance magnate Greg Lindberg, former owner of now-insolvent insurers, to pay more than $576 million pursuant to a personal guaranty for a reinsurance agreement.
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October 22, 2024
Remand Dispute In Reinsurance Row Focuses On Joint Powers Authority
LOS ANGELES — Whether a joint powers authority (JPA) is a citizen of California for purposes of diversity jurisdiction is disputed in a California federal court lawsuit over a reinsurer’s denial of coverage for litigation arising from sexual abuse allegations, with the JPA urging remand in its reply brief.
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October 21, 2024
Reinsurers Move To Compel Arbitration In Billings Dispute Involving MOU
LOS ANGELES — Arguing that a dispute over reinsurance billings arising from asbestos bodily injury claims falls within the scope of the “broad” arbitration agreement in the excess of loss reinsurance treaty at issue, reinsurers in an Oct. 18 motion ask a California federal court to compel arbitration and dismiss or stay the case.
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October 16, 2024
6th Circuit Affirms Dismissal Of Suit Over Stalled Crop Insurance Probe
CINCINNATI — Affirming dismissal of a case where farmers challenged what they called a “never-ending stalled investigation” into their crop insurance claims, a Sixth Circuit U.S. Court of Appeals panel on Oct. 15 said the Federal Crop Insurance Act (FCIA) doesn’t clearly waive “sovereign immunity with respect to constructive denial claims.”
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October 16, 2024
Parties Brief Dispute Over Which Legal Fees Fall Under Reinsurance Contract
MONTGOMERY, Ala. — An Alabama federal judge has ordered an insurer to respond to a reinsurer’s objections to parts of declarations it submitted in summary judgment briefing concerning disputed legal fees.
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October 14, 2024
Bid To Dismiss Louisiana Direct Action Against Reinsurers Ruled Premature
NEW ORLEANS — A motion to dismiss direct-action claims against unnamed reinsurers asserted in a third-party complaint has been denied as premature, with a Louisiana federal judge saying the key factor is whether the contract at issue is one of indemnity or liability.
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October 14, 2024
Suit Against Captive Reinsurer, Others Follows Alleged Board Upheaval
WASHINGTON, D.C. — Alleging in part that board upheaval left a captive reinsurer “under the management of inexperienced board members,” a risk retention group (RRG) sued three entities it claims it long had a close relationship with, asserting claims in a District of Columbia federal court for breach of contract, breach of the covenant of good faith and fair dealing and tortious interference with business relations.
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October 14, 2024
Owners Of Aircraft Valued At More Than $222M Sue Insurers In State Court
STAMFORD, Conn. — Claiming breach of contract and bad faith, five entities that own two freighter planes that they allege a Russian cargo airline has refused to return after the invasion of Ukraine have filed a suit in Connecticut state court against more than two dozen “insurers, underwriters, underwriting managers, and insurance subscribers of coverage in the international aviation insurance market.”
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October 10, 2024
Judge: FCIC Determination Requirement Applies To Tobacco Farmer’s Claims
WINSTON-SALEM, N.C. — Ruling that a Federal Crop Insurance Corp. (FCIC) “determination requirement applies to all claims seeking extra-contractual damages related to a federally reinsured crop insurance policy,” a North Carolina federal magistrate judge ordered a farmer to show cause why his suit should not be dismissed pending compliance with that requirement.
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October 10, 2024
Florida Panel Dismisses Reinsurer’s Appeal From Insolvency Proceeding
TALLAHASSEE, Fla. — In a brief per curiam disposition, a Florida appellate panel partly dismissed and partly affirmed an offshore reinsurer’s appeal of the denial of its motion to lift an automatic stay in a workers’ compensation insurer’s liquidation and to compel arbitration.
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October 10, 2024
Standing, Adequacy Of RICO Allegations Disputed In Reinsurer’s Lawsuit
BROOKLYN, N.Y. — A New York federal judge has dismissed a Racketeer Influenced and Corrupt Organizations (RICO) Act lawsuit without prejudice against more than a dozen defendants that a reinsurer alleged took part in purportedly fraudulent workers’ compensation claims and personal injury lawsuits.
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October 10, 2024
Claims Objection Bar Date Extension Granted In Liquidation Of Vesttoo
WILMINGTON, Del. — A Delaware federal bankruptcy judge has granted a motion to extend the claims objection bar date by 180 days to April 7 in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates.
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October 08, 2024
Argument Is Set In 7th Circuit Interlocutory Appeal Over Preclusion Dispute
CHICAGO — Argument has been set for Nov. 6 in an interlocutory Seventh Circuit U.S. Court of Appeals case challenging a dismissal ruling in a dispute over whether mine subsidence claims are barred by claim and issue preclusion.
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October 08, 2024
7th Circuit Sets Argument In Reinsurers’ Arbitration Estoppel Dispute
CHICAGO — The Seventh Circuit U.S. Court of Appeals has scheduled oral argument for Nov. 5 in reinsurers’ appeal concerning the effects of prior arbitration, which involves asbestos-related liabilities; the dispute also includes a dismissal motion that is based on a recent U.S. Supreme Court ruling.
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October 03, 2024
Alter Ego Liability Theory Rejected In Ruling On Summary Judgment Motions
SACRAMENTO, Calif. — Ruling on two motions for summary judgment on cross-claims in a suit involving reinsurance and related agreements, a California federal judge rejected an alter ego argument, granting one motion fully and the other partially.
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October 02, 2024
English Appellate Court Rules Against Reinsurer In COVID-19 ‘Catastrophe’ Case
LONDON — Rejecting both main arguments a reinsurer advanced in a dispute over business interruption losses, a panel of the Court of Appeal of England and Walesagreed with a lower court’s ruling that under the reinsurance agreement, the COVID-19 pandemic is a “catastrophe” and an “Hours Clause” doesn’t exclude individual losses that continue to develop more than 168 hours after they first occur.