Author: Goldberg Segalla

Union Carbide Corp. v. Affiliated FM Ins. Co.

(NY App. December 15, 2009)

A commercial policyholder sought a declaration that the stated aggregate limits of liability for multi-year excess policies apply on an annual basis. Each of the excess policies contained a declaration that specified a dollar amount as the "limit of liability" and states that the limit applies to each occurrence and "in the aggregate." The policyholder contended that, because the excess policies are silent as to whether the limit of liability is annualized, …

Felman Production, Inc. v. Industrial Risk Insurers

(S.D. W. Va. October 19, 2009)

After a power failure at plaintiff’s metals plant resulted in physical damage and business interruption loss, plaintiff sued its direct insurers and their reinsurer, Swiss Reinsurance.  Swiss Reinsurance moved to dismiss plaintiff’s complaint arguing that no claim could be asserted against it because an insured party cannot maintain a direct action against a reinsurer. 

The court noted that there are two exceptions to this rule.  A reinsurer may …

Sun Life Assurance Co. of Canada v. Liberty Mut. Ins. Co. et. al.

(United States District Court, Southern District California, December 9, 2009)

This action arises from a dispute between the parties over their obligations under two reinsurance contracts.  The petitioner, Sun Life, seeks the confirmation of a prior arbitration award, whereas respondents contend that in seeking confirmation of the award Sun Life also seeks substantive rulings regarding the rights and liabilities of the parties that the arbitration panel did not address.  …