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Breach of Contract Reinsurance

Carlton Fields

District Court Grants Motions to Dismiss Claims Brought by Reinsurer

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The U.S. District Court for the Northern District of Texas recently dismissed certain claims brought by a reinsurer related to its efforts to audit an insurer’s broker....more

Goldberg Segalla

Summary Judgment against Reinsurer Affirmed where Exhaustion and Attachment Point Provisions were Ambiguous

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U.S. Court of Appeals for the Second Circuit, September 15, 2022 - Fireman’s Fund Ins. Co. v. Onebeacon Ins. Co., 2022 U.S. App. LEXIS 25863 - Fireman’s Fund Insurance Company (“Fireman’s Fund”) issued three excess...more

White and Williams LLP

Reinsurance Litigants May Need to Avoid Putting Their Faith in the Tort of Bad Faith

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In a recent Alabama federal court decision, aptly captioned Alabama Municipal Insurance Corporation v. Munich Reinsurance American, Inc., the plaintiff reinsured brought three counts of bad faith against the defendant...more

White and Williams LLP

Court Confuses Insurance Policy for Reinsurance Contract in Determining When Cause of Action Accrues

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In a recent decision dismissing claims against a workers compensation insurer as time barred, a New York trial court briefly addressed the often perplexing issue of when a cause of action accrues for breach of insurance and...more

Carlton Fields

New York Federal Court Confirms Arbitration Award Where Plaintiff Offered No Grounds to Vacate, Modify, or Correct Award

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PB Life and Annuity Co. Ltd. brought this action seeking a declaratory judgment that a breach of contract dispute with Universal Life Insurance Co. was not subject to arbitration and must be litigated in federal or state...more

Carlton Fields

Nebraska Appellate Court Affirms Dismissal for Lack of Personal Jurisdiction in Suit Involving Breach of Reinsurance Participation...

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The Court of Appeals of Nebraska has affirmed the dismissal of a claim under a reinsurance participation agreement based on lack of personal jurisdiction....more

Carlton Fields

Trial Court Denies Post-Trial Motions in Asbestos Reinsurance Saga Involving Claims That Reinsurer Failed to “Follow the Fortunes”...

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We previously posted about the yearslong reinsurance dispute between Utica Mutual Insurance Co. (the cedent) and Century Indemnity Co. (the reinsurer), involving Utica’s claims that Century breached two reinsurance...more

Carlton Fields

Court Dismisses Reinsurance Litigation in Favor of Prior Pending Action

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The plaintiffs, U.S. Fire Insurance Co. and North River Insurance Co., issued 12 umbrella and excess umbrella liability policies for a combined coverage of $244 million to a manufacturer of respiratory protection equipment...more

Carlton Fields

DC District Court Permits Vantage Commodities To File Amended Complaint And Denies Reinsurer Defendants’ Motion For Interlocutory...

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The District Court for the District of Columbia issued an order denying a motion to reconsider its prior order allowing Vantage Commodities to file an amended complaint and denying the reinsurer defendants’ motion for...more

Carlton Fields

Applied Underwriters Defeats Motion For Summary Judgment In Suit Over Breach Of Reinsurance Participation Agreement

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Applied Underwriters Captive Risk Assurance Company, Inc. (Applied) defeated a motion for summary judgment filed by Beemac Driver Management, LLC (Beemac), in a lawsuit precipitated by Beemac’s alleged failure to pay either...more

Carlton Fields

Years-Long Asbestos Reinsurance Battle Continues For Utica And Century, Including Whether Century Must Follow The Fortunes Of...

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In 2013, Utica Mutual Insurance Company (the cedent) filed a complaint alleging that Century Indemnity Company (the reinsurer) (1) breached two reinsurance certificates executed between the parties covering the years 1973 and...more

Carlton Fields

Contract Claims Dismissed Against Reinsurers and Reinsurance Service Providers, but Negligence Claim Against Service Providers...

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Vantage, the plaintiff, had purchased insurance from Assured Risk Transfer (ART) against the risk that a company to which Vantage had loaned $22 million would default....more

Carlton Fields

Reinsurer Obtains Summary Judgment in Suit by Annuity Issuer

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Capitol Life Insurance Co. partially prevailed, and partially failed, its effort to overturn unfavorable grants of summary judgment in a recent dispute regarding an annuity policy written by Capitol....more

Carlton Fields

Court Enforces Forum Selection And Choice Of Law Clauses In Worker’s Compensation Reinsurance Participation Agreement

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Plaintiff AGL Industries, Inc. (AGL), a steel fabrication and erection business, enrolled in a workers’ compensation insurance policy with Defendant Continental Indemnity Company and a reinsurance participation agreement...more

Carlton Fields

Florida Federal Court Dismisses Reinsurer’s Agent From Breach Of Contract Lawsuit

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In this case, the ceding company, VIP Universal Medical Insurance Group Ltd. (“VIP”), brought an action in Florida federal court against its reinsurer, BF&M Life Insurance Company Ltd. (“BF&M”), and International Reinsurance...more

Carlton Fields

Ninth Circuit Upholds Denial Of Judgment Creditor’s Request For Rescission Of Quota-Share Reinsurance Agreement

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Defendant National Farm Financial Corp. agreed to sell Business Alliance Insurance Co. (BAIC) to PSM Holding Corp. After National Farm walked away from the deal, PSM sued National Farm, BAIC, and BAIC’s president, Larry Chao,...more

Carlton Fields

New York Federal Court Dismissed Action, Finding That Insurer’s Reimbursement Under Insured’s Captive Reinsurance Agreement Did...

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In this case, plaintiffs Keller Foundations LLC, a limited liability construction company (“Keller”), Hayward Baker Inc., a construction services corporation (“HBI”), and their parent Keller Group PLC (“Keller Group”) brought...more

Carlton Fields

New York Federal Court Largely Denies Motions for Summary Judgment on Issues in Breach of Facultative Reinsurance Certificate...

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Defendant, Munich Re, moved for summary judgment relating to defense costs and allocation and Plaintiff, Utica, moved for summary judgment as to Munich Re’s claim for reimbursement. The Court denied the motions with the...more

Carlton Fields

Nebraska Federal Court Applies First-To-File Rule To Reinsurance Breach Of Contract Disputes, Transfers Case To Connecticut

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The District of Nebraska recently ruled in favor of Charter Oak Oil Co. (“Charter Oak”)’s attempt to dismiss a breach of contract case by Applied Underwriters Captive Risk Assurance Co. (“AUCRA”) based on the first-to-file...more

Carlton Fields

Federal Court Denies Reinsurer’s Post-Trial Motions In Long-Running Dispute Which Resulted In A Verdict In Its Cedent’s Favor

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A federal district court has denied both a motion for judgment as a matter of law or for a new trial and a motion to correct the interest calculation filed by Fireman’s Fund Insurance Company after a jury award of $35 million...more

Carlton Fields

Reinsurer Prevails In Dismissing Breach Of Contract, Bad Faith Claims Asserted By Underlying Policyholder

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A federal district court in Pennsylvania recently dismissed all claims asserted by an insured against a reinsurer in a coverage dispute over an explosion at plaintiff Three Rivers Hydroponics (“Three Rivers”)’s commercial...more

Carlton Fields

S.D.N.Y. Dismisses Insurer’s Claims Against Reinsurance Broker Under Economic Loss Doctrine, Finds No Special Relationship

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A New York federal court has dismissed a ceding insurer’s counterclaims against its reinsurance broker, finding the insurer’s claims for negligence and breach of fiduciary were barred by New York’s economic loss doctrine, and...more

Carlton Fields

Insurer’s Attempt To Shield Documents From Discovery Through Assertion Of The Mediation Privilege And A Relevancy Objection Is...

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In a breach of contract and bad faith case emanating from an insurer’s refusal to settle an underlying case within policy limits, the insurer was unsuccessful in its attempt to protect documents from discovery by assertion of...more

Carlton Fields

Court Compels Discovery, Awards Sanctions In Dispute Over Whether Reinsurance Arbitration Clause Applies

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In 2011, Top’s Personnel entered into a reinsurance agreement with Applied Underwriters Captive Risk Assurance Company (“AUCRA”), and several years later executed a promissory note (“the Note”) in favor of a related entity,...more

Carlton Fields

Illinois District Court Dismisses Case Filed By Insurance Department, As Rehabilitator, Against Reinsurer

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The District Court for the Northern District of Illinois dismissed a complaint filed by Plaintiff-Rehabilitator, the Illinois Director of Insurance, against Defendant-Reinsurer, Twin Rivers, alleging breach of contract,...more

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