Callon Petroleum Co. v. National Indemnity Co. (E.D.N.Y. December 23, 2010)
In 2000, plaintiff policyholder obtained a judgment against defendant insurer intervener out of a surety bon issued by insurer. Insurer failed to satisfy the judgment and policyholder commended that action against defendant reinsurer on the bond to collect the judgment out of the reinsurance proceeds. Insurer subsequently filed a motion to intervene
Court held that insurer was a proper intervening party because it satisfied the four elements for intervening, namely: (1) file a timely motion; (2) show an interest in the litigation; (3) show that its interest may be impaired by the disposition of the action; and (4) show that its interest is not adequately protected by the parties to the action. Specifically, insurer has demonstrated an interest in the litigation because policyholder seeks to recover reinsurance proceeds that the reinsurance agreement assigns to insurer. In addition, insurer meets the minimal burden of showing that its interest may not be adequately protected in the litigation because the reinsurer is potentially indifferent to whom it must pay.
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Sarah Fang and Michael Glascott
https://www.goldbergsegalla.com/attorneys/Fang.html
https://www.goldbergsegalla.com/attorneys/MGlascott.html
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