Reinsurance Newsletter - December 2014

    View Author 1 December 2014

    In This Issue

    • Recent Case Summaries
      • Second Circuit Affirms Reinsurer’s Late Notice Defense Under Illinois Law
        AIU Ins. Co. v. TIG Ins. Co., No. 13-1580-cv, 2014 U.S. App. LEXIS 16513 (2d Cir. Aug. 27, 2014) (Summary Order – No Precedential Effect).
      • Federal Court Denies Reinsurer’s Request to Force a Third-Party to Join Arbitration
        Transatlantic Reins. Co. v. Nat’l Indemn. Co, No. 14 C 1535, 2014 U.S. Dist. LEXIS 85533 (N.D. Ill. Jun. 24, 2014).
      • New York Federal Court Denies Petition to Appoint Umpire
        Odyssey Reins. Co. v. Certain Underwriters at Lloyd’s London, No. 13 Civ. 9014 (PAC), 2014 U.S. Dist. LEXIS 96356 (S.D.N.Y. Jun. 30, 2014).
      • Missouri Federal Court Denies Motion for Reconsideration of Order Quashing Subpoena to Umpire Seeking Release of Arbitration Award
        Jo Ann Howard & Assocs., P.C. v. Cassity, No. 4:09CV01252 ERW, 2014 U.S. Dist. LEXIS 95896 (E.D. Mo. July 15, 2014).
      • Cedent Denied Leave to Appeal Ruling on Who Decides Statute of Limitations
        ROM Reins. Mgmt. Co., Inc., v. Continental Ins. Co., No. M-1783 (App. Div. 1st Dep’t Jul. 24, 2014).
      • New York Federal Court Caps Payments for Combined Loss and Expenses at Reinsurance Accepted Limits
        Global Reins. Corp. of Am. v. Century Indemn. Co., No. 13 Civ. 06577 (LGS) 2014 U.S. Dist. LEXIS 113793 (S.D.N.Y. August 15, 2014).
      • New York State Motion Court Denies Reargument or Renewal of Motion to Dismiss Affirmative Defenses Based on Cedents’ Loss Portfolio Transfer
        Granite State Ins. Co. v. Transatlantic Reins. Co., No. 652506-2012, 2014 N.Y. Misc. LEXIS 2686 (N.Y. Sup. Ct. N.Y. Co. Jun. 18, 2014).
      • New York Federal Court Grants Motion for Summary Judgment on Breach of Guarantee of Payment for Debts Owed under Reinsurance and Retrocession Agreements
        Greenlight Reins., Ltd. v. Appalachian Underwriters, Inc., No. 1:12-cv-8544-JPO-GWG, 2014 U.S. Dist. LEXIS 102779 (S.D.N.Y. Jul. 28, 2014).
      • Eleventh Circuit Reverses Dismissal of Cedent’s Complaint Against Reinsurer for Failure to Cover Underlying Defense Fees
        Public Risk Mgmt. of Fla. v. One Beacon Ins. Co., No. 13-15254, 2014 U.S. App. LEXIS 11825 (11th Cir. Jun. 24, 2014).
      • Captive Reinsurance Affiliate Prevails Because the Claim Was Time-Barred
        Hill v. Flagstar Bank, No. 12-2770, 2014 U.S. Dist. LEXIS 86889 (E.D. Pa. Jun. 26, 2014).
      • Iowa Federal Court Compels Production of Reinsurance Communications
        Progressive Cas. Ins. Co. v. FDIC, No. C12-4041-MWB, 2014 U.S. Dist. LEXIS 116909 (N.D. Iowa Aug. 22, 2014).
      • Minnesota Federal Court Upholds Order to Produce Reinsurer Communications
        Nat’l Union Fire Ins. Co. v. Donaldson Co., No. 10-4948 (JRT/JJG), 2014 U.S. Dist. LEXIS 85621 (D. Minn. Jun. 24, 2014).
      • Seventh Circuit Holds FSIA Overrides State Statute Requiring Pre-Answer Security from Foreign Government-Owned Reinsurer and Rejects Right to Arbitrate
        Pine Top Receivables of Ill., LLC v. Banco de Seguros del Estado, Nos. 13-1364 & 13-2331, 2014 U.S. App. LEXIS 2129 (7th Cir. Nov. 7, 2014).
      • Second Circuit Affirms Ruling that Interest on a Judgment is Not a Covered Loss Under the Terms of the Reinsurance Contract
        Seneca Ins. Co. v. Everest Reins. Co., No. 13-4201-cv, 2014 U.S. App. LEXIS 19929 (2d Cir. Oct. 16, 2014) (Summary Order).
      • Massachusetts Federal Court Grants Motion to Compel Arbitration of Reinsurance Dispute, Vacates Previous Arbitral Clarification
        Nationwide Mut. Ins. Co. v. Liberty Mut. Ins. Co., Nos. 13-cv-12910-PBS and 14-cv-12046-PBS, 2014 U.S. Dist. LEXIS 157595 (D. Mass. Nov. 6, 2014).
      • New York Federal Court Confirms an Interim Security Award Against Reinsurer and Rejects Motion to Disqualify Panel
        Companion Prop. & Cas. v. Allied Provident, No. 12-cv-7865, 2014 U.S. Dist. LEXIS 136473 (S.D.N.Y. Sept. 26, 2014).
      • New York Federal Court Allows Attorney Disqualification Discovery
        Utica Mut. Ins. Co. v. Emplrs. Ins. Co., No. 6:12-CV-1293, 2014 U.S. Dist. LEXIS 132271 (N.D.N.Y. Sept. 22, 2014).
      • Massachusetts Federal Court Dismisses Petition to Confirm Interim Arbitration Award
        First State Ins. Co. v. Nationwide Mut. Ins. Co., No. 13-cv-11322-IT, 2014 U.S. Dist. LEXIS 149649 (D. Mass. Oct. 21, 2014).
      • Michigan Federal Court Grants in Part and Denies in Part Request to Seal on Motion to Confirm Arbitration Award
        Amerisure Mut. Ins. Co. v. Everest Reins. Co., No. 14-cv-13060, 2014 U.S. Dist. LEXIS 153013 (E.D. Mich. Oct. 29, 2014).
      • New York Federal Court Decides Rare Cat Bond Case
        Mariah Re Ltd. v. Am. Family Mut. Ins. Co., No. 13-cv-4657 (RJS), 2014 U.S. Dist. LEXIS 140859 (S.D.N.Y. Sept. 30, 2014).
      • New York Federal Court Decides Another “Bellefonte” Case in Favor of the Reinsurer
        Utica Mut. Ins. Co. v. Clearwater Ins. Co., No. 6:13-cv-1178, 2014 U.S. Dist. LEXIS 162645 (N.D.N.Y. Nov. 20, 2014).
      • Illinois Appellate Court Finds for Reinsurer on Facultative Certificate Limits
        Cont’l Cas. Co. v. Midstates Reins. Corp., No. 1-13-3090, 2014 Ill. App. Unpub. LEXIS 2456 (Ill. App. 1st Dist. Nov. 4, 2014).
      • New York State Court Addresses Various Late Notice and Discovery Issues
        Lexington Ins. Co. v. Sirius Am. Ins. Co., No. 651208/2012, 2014 N.Y. Misc. LEXIS 4138 (N.Y. Sup. Ct. Sept. 15, 2014).
      • Pennsylvania State Appeals Court Finds Non-Commercial Insurance Company Entered Into a Reinsurance Agreement for Claims Priority Purposes
        Ala. Ins. Guar. Ass’n v. Reliance Ins. Co., No. 6 REL, 2012, Pa. Commw. LEXIS 10758 (Sept. 12, 2014).
      • New York Appellate Court Dismisses All Claims Against Reinsurer and Claims Adjuster
        OneBeacon Am. Ins. Co. v. Colgate-Palmolive Co., No. 651193/11, 2014 N.Y. App. Div. LEXIS 7255 (N.Y. App. Div. 1st Dep’t Oct. 28, 2014).
      • New York Federal Court Holds Cedent and Reinsurer Have Identity of Interest Concerning Recovery from Third Party
        Wells Fargo Bank, N.A. v. Wales LLC, No. 13 Civ. 6781 (PGG), 2014 U.S. Dist. LEXIS 132192 (S.D.N.Y. Sept. 19, 2014).
      • Iowa Federal Court Affirms Holding that Risk Management Communications Between Cedent and Reinsurer Are Not Privileged and Non-Party Reinsurer Must Produce Documents Pursuant to Subpoena
        Progressive Cas. Ins. Co. v. FDIC, No. C 12-4041 (MWB), 2014 U.S. Dist. LEXIS 140709 (N.D. Iowa Sept. 3, 2014).
      • Reinsurance Contracts Are Relevant to Assist in Discovering Financial Status
        Smith v., Inc., No. 10-11490, 2014 U.S. Dist. LEXIS 135904 (E.D. Mich. Sept. 26, 2014).
      • Reinsurance Contracts Are Discoverable if They Relate to Coverage Dispute
        Harleysville Lake States Ins. Co. v. Lancor Equities, Ltd., No. 13 C 6391, 2014 U.S. Dist. LEXIS 154685 (N.D. Ill. Oct. 31, 2014).
      • Michigan Federal Court Addresses Document Production Dispute and Grants in Part Fees and Costs Against Cedent
        Mich. Millers Mut. Ins. Co. v. Westport Ins. Corp., No. 1:14-cv-00151-PLM (W.D. Mich. Nov. 7, 2014).
      • Second Circuit Dismisses Appeal on Breach of Reinsurance Underwriting Agreement Dispute
        Acumen Re Mgt. Corp. v. Gen. Sec. Nat’l Ins. Co., 769 F.3d 135 (2d Cir. 2014).
      • Oklahoma Federal Court Dismisses Bad Faith Claim, But Denies Summary Judgment on Contract Claim on Assumption Reinsurance Agreement
        Evans v. Liberty Nat’l Life Ins. Co., No. 13-CV-0390-CVE-PJC, 2014 U.S. Dist. LEXIS 159507 (N.D. Okla. Nov. 12, 2014).
    • Recent Regulatory Developments
    • Recent Speeches and Publications