Federal Court in PA Denies Motion to Enjoin Reinsurance Dispute; Allows Reinsurer’s Offset Argument to Remain

Century Indemnity Co. v. Certain Underwriters at Lloyd’s

(E.D. Pa, January 11, 2010)

 

The instant action involves a reinsurance dispute where the two parties have filed a number of motions and cross-motion seeking injunctive relief and contempt of court regarding failure to paid monies owed.

 

The court denied both parties various motions.  First the court held that plaintiff’s cross-motion to enjoin a separate action pending in New York court based on the “first-filed” rule is without merit.  Specifically, the court held

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Cases for January 14, 2010 CaseWatch: Insurance

Cases Provided Courtesy of Lexis

Download American States Ins. Co. v. Progressive Casualty Ins. Co. 

Download Amerisure Mut. Ins. Co. v. Hall Steel Co. 

Download Builders Mut. Ins. Co. v. Kalman dba Kalman Const. Corp.

Download Burlington Northern and Santa Fe Railway Co. v. National Union Fire Ins. Co. of Pittsburgh, PA 

Download Derousse v. State Farm Mut. Auto. Ins. Co.

Download Erie Ins. Exchange v. Larrimore 

Download GEICO Indem. Ins. v. Progressive Ins. Co. 

Download GEICO Indem. Ins. v.

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Two Legal Malpractice Claims Against Former Stonewall Attorney Dismissed

Stonewall Corp. v. Conestoga Title Ins. Co. et al

(Southern District of New York, January 7, 2010) 

 

Stonewall Corporation commenced a third-party action against its former attorney alleging he committed legal malpractice while providing it representation with respect to property rights in New Jersey.  Stonewall claims that its attorney (1) failed to pursue certain legal actions, as well as failed to provide proper advice regarding related proceedings; (2) failed to convey a settlement offer; and, (3) failed to produce documents.  The court dismissed

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Ninth Circuit Upholds Arbitration Award Under Reinsurance Contract Despite Ex Parte Communications Between Arbitration Panel and Neutral Experts

U.S. Life Insurance Co. v. Superior National Insurance Co.

(9th Cir. [CA] January 4, 2010)

 

The Ninth Circuit Federal Court of Appeals has recently upheld a California District Court ruling affirming an arbitration award in favor of a group of insurers against a reinsurer.  The group of insurers entered into a reinsurance contract with U.S. Life to reinsure the insurers’ workers compensation risks for a five year period.  After entering into the agreement, the insurers declared bankruptcy and entered into liquidation.…

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Travelers Reaches Settlement With Reinsurer

The Travelers Indemnity Company v. La Fonciere Compagnie D’Assurances, et al.

(D. Conn. December 30, 2009)

 

Travelers Indemnity Co. (“Travelers”) issued primary, umbrella and excess insurance policies to The Goodyear Tire and Rubber Company (“Goodyear”) in the late 1970s.  Travelers was reinsured by La Fonciere Compagnie D’Assurances (“La Fonciere”), Phoenix Greece Ins. Co. S.A. (“Phoenix”), and Assurance Generales de France S.A. (“AGF”) for a portion of the risk associated with its policy covering Goodyear.

 

Goodyear became liable for environmental claims.  Travelers

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District Court Held That Insurer Had No Duty To Defend And Indemnify Under A Coblentz Agreement

Sinni v. Scottsdale Ins. Co.

(United States District Court, Middle District of Florida, December 18, 2009)

 

This action arises out of a slip-and-fall suit that culminated in a “Coblentz agreement” between the parties binding the insurer to the terms of the agreement (i.e., where an insurer has wrongfully refused to defend its insured and there is coverage under the policy, the insurer may be bound by the terms of a negotiated final consent judgment entered against its insured. Coblentz v. Am. Sur. Co.

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NEBRASKA STATUTE INVERSE PRE-EMPTS FEDERAL ARBITRATION ACT

Datacor, Inc. v. Heritage Warranty Insurance Risk Retention Group

(E.D. Mo., December 16, 2009)

 

The plaintiff purchased a contractual liability policy from the defendant.  The parties also entered into an agreement which required the defendant to reimburse the plaintiff for monies expended for warranty claims.  The agreement contained an arbitration provision, and a choice of law provision.  The choice of law provision designated Nebraska as the applicable law. 

 

A dispute arose between the parties, and the plaintiff filed suit.

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Self-Funded Plans Are Classified As Reinsurance Under Texas Law

American Nat’l Ins. Co. v. Texas Dep’t. of Ins.

Ct. App. TX, December 16, 2009

 

This dispute involves the appeal of insurers against a ruling by the Texas Department of Insurance finding that stop-loss insurance policies that were sold to self-funded employee benefit plans should have been characterized as direct insurance instead of reinsurance.

 

The insurers contend that the self-funded plans are insurers as defined by the insurance code and thus qualify under the contextual definition of former article 3.10(a) to buy reinsurance

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