Mealey's Reinsurance
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September 11, 2024
Arbitration Award Of More Than $11.3M Is Confirmed In Retrocession Case
NEW YORK — Saying that respondent Go Re Inc. hadn’t “put forward any defense, or otherwise appeared in this Action,” a New York federal judge granted a petition to confirm an $11,326,463 arbitration award in a dispute involving a retrocession agreement.
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September 10, 2024
Petition On Third-Party Subpoena Prehearing Issue Is Voluntarily Dismissed
DETROIT — Two weeks after filing a petition to compel compliance with third-party subpoenas for prehearing discovery depositions, an insurer filed a notice of voluntary dismissal without prejudice and a Michigan federal court accordingly dismissed the suit that concerned a $950,742.64 dispute over a medical excess reinsurance agreement that has gone to arbitration.
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September 05, 2024
Reinsurer Files Suit Over TPA’s Alleged Mishandling Of Insurance Claims
BILLINGS, Mont. — Seeking declaratory judgment and damages for claims that it alleges were mishandled and misallocated, a Bermuda-based reinsurer sued an insurer and third-party administrator (TPA) in Montana federal court.
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September 05, 2024
Citing FAA, Insurer Raises Third-Party Subpoena Prehearing Issue In Federal Court
DETROIT — An insurer has petitioned a Michigan federal court to compel compliance with third-party subpoenas for prehearing discovery depositions in a $950,742.64 dispute over a medical excess reinsurance agreement that has gone to arbitration.
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September 04, 2024
Insurer Gets Reinsurance Breach Of Contract Row That Exceeds $20M Transferred
TAMPA, Fla. — A suit over an alleged reinsurance agreement breach that exceeds $20 million will be transferred to a different federal court “[b]ased on the totality of the circumstances, and in the interest of justice,” a Florida federal judge ruled.
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September 03, 2024
Reinsurer’s Purchaser Wins Preliminary Injunction In Suit Over Forced Deal
NEW YORK — A New York federal judge on Aug. 30 granted a motion for preliminary injunction in an insurer’s suit over its April 14 purchase of Bermuda-based reinsurer JRG Reinsurance Company Ltd.
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September 03, 2024
Discovery Issues Derail Summary Judgment Bid In Cleanup Costs Coverage Row
PADUCAH, Ky. — After a report of discovery issues prompted denial of a summary judgment motion without prejudice in a dispute over pollution-related cleanup costs, a Kentucky federal magistrate judge has set new discovery deadlines and given the plaintiff leave to move to compel production.
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August 30, 2024
Bank Faces Another Negligence, Fraud Suit In Connection With Vesttoo Collapse
NEW YORK — Asserting fraud and negligence claims against China Construction Bank Corp. (CCBC) and related entities, a company affected by the collapse of Vesttoo Ltd. filed suit in New York state court for damages that it says include at least $140 million in cedent premium payments that went into designated segregated accounts.
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August 30, 2024
Government Wins Dismissal Of Suit Over Microcaptive Reporting Requirement
SALT LAKE CITY — Granting dismissal of a suit challenging a 2016 Internal Revenue Service reporting requirement for microcaptive insurance companies, a Utah federal judge said the Anti-Injunction Act (AIA) and Declaratory Judgment Act (DJA) bar most or all of the relief sought and “the court lacks the ability to award ‘meaningful’ relief” on any claim that might remain.
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August 29, 2024
N.C. High Court Tosses Insurance Magnate’s Bid For Stay In Receivership Action
RALEIGH, N.C. — Without explanation, the North Carolina Supreme Court on Aug. 28 dismissed a motion for a temporary stay and writ of supersedeas in a judgment creditor’s suit seeking the appointment of a general receiver over the assets of judgment debtor Greg E. Lindberg, a former owner of insurers now in rehabilitation who was convicted of bribing the North Carolina insurance commissioner.
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August 29, 2024
Production Of Full Funding Agreement Ordered In DUFTA Case Involving Insurer
WILMINGTON, Del. — Saying his relevance conclusion sprang from “the class action context . . . and the express terms of the Funding Agreement itself,” a Delaware Chancery Court vice chancellor ordered the plaintiffs in a suit over an alleged scheme to strip capital from an insurance subsidiary on which many policyholders depend for long-term care (LTC) disability benefits to produce the funding and contingent fee agreements in their entirety.
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August 27, 2024
Only Direct Claim Survives Dismissal Bids In Lawsuit Over Asbestos Judgment
NEW YORK — Saying that amending those claims would be futile, a New York federal judge granted dismissal of bad faith, negligence and tortious interference claims against an insurer and a third-party claims administrator in a suit over a multimillion-dollar asbestos exposure judgment.
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August 27, 2024
4th Circuit Upholds Judgment Against Insurance Mogul In $524M Guaranty Case
RICHMOND, Va. — In a brief Aug. 26 unpublished per curiam opinion, a Fourth Circuit U.S. Court of Appeals panel affirmed judgment that enforces an arbitration award for $524 million plus interest against an insurance mogul who issued a guaranty.
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August 23, 2024
Amicus Deadline On Economic Substance Doctrine Extended In Microcaptive Case
WASHINGTON, D.C. — A U.S. Tax Court judge who ordered supplemental briefing regarding the “economic substance doctrine” in consolidated cases involving purported microcaptive insurance companies and invited amicus curiae briefs “given the novelty of the issues” on Aug. 22 extended the deadline to move for leave to file a brief as amicus to Sept. 6.
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August 12, 2024
COMMENTARY: Waiver Of The Right To Arbitration Without Prejudice
By Robert M. Hall
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August 22, 2024
Statutory Reinsurer Urges 7th Circuit To Affirm Dismissal In Preclusion Row
CHICAGO — In an appellee brief asserting in part that the appellant “has yet to provide any justification in law, equity, or logic, why [the appellee] should not be allowed to exercise the same right as the property owner,” a statutory reinsurer urges the Seventh Circuit U.S. Court of Appeals to affirm a dismissal ruling in an interlocutory appeal concerning whether mine subsidence claims are barred by claim and issue preclusion.
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August 22, 2024
Dismissal Recommendation In Crop Insurance Interpretation Row Draws Objections
SAVANNAH, Ga. — Objecting to a Georgia federal magistrate judge’s recommendation that a crop insurance case be dismissed because it “is simply not at a stage where the Court may properly exercise its jurisdiction,” a farm argues in part that it “has shown that going forward with the arbitration under the cloud of possibly invalid or incorrect or incomplete policy or procedure interpretations will result in a wrong arbitration decision which, under current case law, cannot be challenged.”
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August 22, 2024
Reinsurer Takes Timely Notice, Other Issues To 5th Circuit In Indemnity Row
NEW ORLEANS — Fighting a $2,866,423.97 judgment that includes attorney fees, a reinsurer told the Fifth Circuit U.S. Court of Appeals that the challenged decision “appears to be the first case to vest virtually unfettered discretion with an insured (or ceding company in this case) to decide when to notify its insurer (or reinsurer) of a claim.”
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August 22, 2024
Unspecified Settlement Ends Franchisee’s Suit Involving Reinsurance Commutation
JACKSON, Miss. — Citing an unspecified settlement reached by the remaining parties, a Mississippi federal judge dismissed a case involving a franchisee and commutation of reinsurance.
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August 20, 2024
Receiver Tackles Proposal Objections In Reinsurer’s Liquidation Proceeding
WILMINGTON, Del. — In a consolidated reply filed Aug. 19 in the Delaware Chancery Court, the receiver for life and health reinsurer Scottish Re (U.S.) Inc. (SRUS) argues for dismissal of the objections to four proof of claim (POC) procedures he proposed in the liquidation.
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August 20, 2024
Judge Closes Case Seeking To Stay Arbitration On Report Of Settlement In Principle
NEW YORK — Citing a notice “that all claims asserted herein have been settled in principle,” a New York federal judge closed a case in which the successor of an assuming reinsurer sought to stay an arbitration demand.
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August 16, 2024
Tax Court Judge Sets Briefing On Economic Substance Doctrine In Microcaptive Case
WASHINGTON, D.C. — Saying amicus curiae briefs are welcome “given the novelty of the issues” in consolidated cases involving purported microcaptive insurance companies, a U.S. Tax Court judge ordered supplemental briefing regarding the “economic substance doctrine.”
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August 16, 2024
9th Circuit Denies Rehearing Bid Based On Loper Bright In Crop Insurance Row
SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals has denied a petition in which a farm sought panel and en banc rehearing of a crop insurance dispute by arguing that Loper Bright Enterprises v. Raimondo “effectively rejected the Panel’s deference to agency interpretations of legal questions.”
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August 15, 2024
$365,000 Offer Of Judgment Accepted In Row Over Workers’ Compensation Program
OMAHA, Neb. — The defendant in a Nebraska federal court case involving the EquityComp workers’ compensation program made the plaintiff a $365,000 offer of judgment under Federal Rule of Civil Procedure 68 on Aug. 14, and the plaintiff accepted the offer that day.
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August 14, 2024
Partial Dismissal Granted In $1B RICO Insurance Fraud Scheme Involving Magnate
RALEIGH, N.C. — A North Carolina federal judge on Aug. 13 partially dismissed a Racketeer Influenced and Corrupt Organizations Act (RICO) case against defendants accused of participating in a $1 billion scheme to defraud now-insolvent insurers once owned by former insurance magnate Greg Lindberg, finding that the pleadings lack specificity as to those entities indirectly owned by Lindberg.