On April 13, 2021, we reported on a decision by the U.S. District Court for the Middle District of Alabama that dismissed a portion of a complaint brought by cedent Alabama Municipal Insurance Corp. (AMIC) for bad faith against its reinsurer Munich Reinsurance America Inc., based on the court’s prediction that the Alabama Supreme Court would refuse to recognize bad faith claims in the context of reinsurance disputes.

The district court has now granted Munich Re’s motion for leave to file a second amended answer and add two counts for declaratory relief to its counterclaim regarding the parties’ rights under the relevant reinsurance treaties, including AMIC’s alleged litigation management and reporting responsibilities. The court rejected AMIC’s arguments that the request to amend was unduly delayed, or that the discovery plan would be inadequate if the amendments were permitted.

Alabama Municipal Insurance Corp. v. Munich Reinsurance America Inc., No. 2:20-cv-00300 (Sept. 8, 2021).