Author: Thomas F. Segalla

Ario v. Reliance Ins. Co.

( Pa. Commw. Ct. September 4, 2009)

The court granted the summary judgment motions of two hospitals seeking treatment as third-party beneficiaries of reinsurance agreements where: (1) the primary insurer acted only as a fronting company in which capacity it did not accept an underwriting risk; (2) the primary insurer entered the transaction to generate fee income, not premium revenue; (3) the reinsurer acted as the direct insurer by funding and processing claims through its affiliate; (4) the hospitals chose …

PMA Capital Ins. Co. v. Platinum Underwriters Bermuda, LTD

(Eastern District of Pennsylvania, September 17, 2009)

A Reinsurer demanded arbitration, seeking a declaration with respect to calculation of the balance of the Experience Account under the reinsurance contract and that it was entitled to the “benefit deficit carry forward” under a prior contract with a different reinsurer.  The arbitrators awarded the reinsurer $6 million dollars within 30 days and eliminated the deficit carry forward provision in the contract in its entirety.  Finding that the …

In re an Arbitration in London, England between Northfolk Southern Corp. et al v. ACE Bermuda LTD  (Northern District Ill., June 15, 2009)

The named insured and named party in a London reinsurance arbritration requested that the district court order a non-party witness to testify in the arbitration.  The movants relied exclusively on 28 U.S.C. §1782, which provides a district court with the inherent power to order a person to testify or provide documents for use in a proceeding in a foreign or international tribunal. 

The non-party …