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No Tort Liability in Reinsurance Contract Dispute Under California Law

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California federal court addressing an issue of the first impression holds that tort liability for breach of the implied covenant of good faith and fair dealing was not a valid cause of action under California law in a reinsurance dispute. A typical reinsurance dispute is essentially a breach of a contract dispute. A reinsurance agreement is a contract between two insurance … [Read more...] about No Tort Liability in Reinsurance Contract Dispute Under California Law

Using a Letter Agreement to Strengthen the Confidentiality of Settlement Negotiations

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Letter agreements are usually confidential.  As a result, there is a dearth of practical guidance on when, and how, to use them. Porter Wright Morris & Arthur LLP helps fill that gap.  Your settlement negotiation checklist should include this entry:  “whether, and how, to use a letter agreement.”  A letter agreement—if well-drafted—can … [Read more...] about Using a Letter Agreement to Strengthen the Confidentiality of Settlement Negotiations

Second Circuit Says Cedent Cannot Use the “Follow-the-Settlements” Doctrine to Circumvent Plain, Unambiguous Policy Provision

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Second Circuit holds that the “follow-the-settlements” doctrine does not bind a reinsurer to settlement decisions that are inconsistent with the plain, unambiguous terms of the reinsured policy.  https://www.whiteandwilliams.com/resources-alerts-Second-Circuit-Says-Cedent-Cannot-Use-the-Follow-the-Settlements-Doctrine-to-Circumvent-Plain-Unambiguous-Policy-Provision.html … [Read more...] about Second Circuit Says Cedent Cannot Use the “Follow-the-Settlements” Doctrine to Circumvent Plain, Unambiguous Policy Provision

Arbitrators to Decide If Reinsurance Rebilling After Final Arbitration Award Is Precluded

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Federal District Court in Massachusetts holds that the preclusive effect of a prior arbitration award is itself an arbitrable issue.  Read full article here - https://www.inredisputesblog.com/2020/03/arbitrators-to-decide-if-reinsurance-rebilling-after-final-arbitration-award-is-precluded/   … [Read more...] about Arbitrators to Decide If Reinsurance Rebilling After Final Arbitration Award Is Precluded

Final Award Confirmed Over Interim Final Award in Reinsurance Dispute

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Court rules that the Final Award is the Final Award and rejects reinsurer’s argument that the arbitration panel was functus officio after it issued the Interim Final Award.  Read full article here - https://www.inredisputesblog.com/2020/04/final-award-confirmed-over-interim-final-award-in-reinsurance-dispute/   … [Read more...] about Final Award Confirmed Over Interim Final Award in Reinsurance Dispute

Who Demands Arbitration Is Key to Whether Arbitration Will be Compelled

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Complex corporate structures and internal reinsurance relationships can complicate legacy reinsurance relationships. Larry Schiffer summarizes a recent SDNY case that dealt with one such complication in compelling arbitration.  Read full article here - https://www.inredisputesblog.com/2020/02/who-demands-arbitration-is-key-to-whether-arbitration-will-be-compelled/ … [Read more...] about Who Demands Arbitration Is Key to Whether Arbitration Will be Compelled

States Open The Window For Sex Abuse Claims

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New Jersey, California and North Carolina join list of jurisdictions that have enacted "revival windows” for time-barred sex abuse claims.  New Jersey “revival window” for time-barred sex abuse claims effective as of December 1, 2019; California and North Carolina to follow in January 2020 This year has been a busy one for state legislatures, many of which … [Read more...] about States Open The Window For Sex Abuse Claims

Is Reinsurance Information Relevant In an Insurance Coverage Case?

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Larry Schiffer of Squire Patton Boggs blogs about noteworthy decision on discovery of reinsurance information in lawsuit against National Football League.  There are lots of cases discussing the production of reinsurance contracts and reinsurance communications in insurance coverage disputes.  Generally, the answer depends on the specific facts of the case.  … [Read more...] about Is Reinsurance Information Relevant In an Insurance Coverage Case?

The Edges of Follow the Fortunes

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Ask two reinsurance experts to define the parameters and limitations of Follow the Fortunes (“FTF”) and you will, undoubtedly, receive two different responses.  Provide these experts with a fact pattern and ask whether FTF applies, and you are still likely to receive inconsistent answers.  It hardly matters whether the experts have more experience on the ceded or … [Read more...] about The Edges of Follow the Fortunes

Allegations of Clergy Misconduct

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In the wake of the recent release of another investigating grand jury report regarding abuse of minors by clerics, Pennsylvania state lawmakers have introduced a proposal to revive previously time-barred civil claims arising out of allegations of childhood sexual abuse. If passed, the new law would open a two-year “window” during which victims could file such claims without … [Read more...] about Allegations of Clergy Misconduct

Avoiding the Next Lanzo: Some Thoughts

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Some thoughts Most readers are familiar, at least to some extent, with the jury’s verdict earlier this year in Lanzo v. Johnson & Johnson. In that case, a New Jersey state court jury awarded $117 million in compensatory and punitive damages against J&J and Imerys after concluding that asbestos-contaminated talc, supplied by Imerys and used to make Johnson’s Baby … [Read more...] about Avoiding the Next Lanzo: Some Thoughts

Brexit: Whats going on?

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A good few eyes are focused on the daily, if not hourly, developing news on the UK’s departure from the European Union. What does it mean for the London Market and in turn for those who deal with its many participants both in the EU and throughout the rest of the world? The run-up to Brexit might have resonances of Y2K and the millennium bug but it is distinctly different. Y2K … [Read more...] about Brexit: Whats going on?

Lanzo v. Johnson & Johnson, et al. Is this the Beginning or the End?

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Recently, while on a family vacation, I drove past the Yellowstone Imerys talc-mining operations in Montana near Yellowstone National Park. The operation is set against a beautiful backdrop in one of the most naturally stunning areas of the country. The tranquil setting stands in stark contrast to the company’s current turmoil as a defendant in one of the highest profile mass … [Read more...] about Lanzo v. Johnson & Johnson, et al. Is this the Beginning or the End?

Legacy Watershed: Capitalizing on the New Legislative Options for Runoff

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New legislation is loosening the tight regulatory knot that’s been wrapped around legacy insurance business in the U.S. Upcoming game-changers include: Key amendments to the Rhode Island Voluntary Restructuring Statute (the ‘Rhode Island Statute’), which, among other amendments (House Bill 8163), would allow (re)insurers to transfer eligible portfolios without requiring … [Read more...] about Legacy Watershed: Capitalizing on the New Legislative Options for Runoff

Cue the Mediator: Hiring a Mediator to Save Costs in Superfund Cases

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In almost 40 years of dealing with CERCLA liability claims, we have learned a thing or two. In November of last year, A.M. Best opined that environmental exposures were “97% funded” at $41 billion in reserves. This is good news compared to 2003, when A.M. Best viewed environmental losses as underfunded by 45% based on a projected ultimate loss of $56 billion. But then, as now, … [Read more...] about Cue the Mediator: Hiring a Mediator to Save Costs in Superfund Cases

The Impact of the Tax Reform Act on the Insurance Industry

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Touted as the most significant federal tax legislation since 1986, Public Law 115-97 – informally known as the “Tax Cuts and Jobs Act” (the “TCJA”) – was enacted on December 22, 2017. This article examines the potential impact of several provisions of the TCJA on the insurance industry. The changes in the TCJA to domestic corporate tax provisions, including the corporate tax … [Read more...] about The Impact of the Tax Reform Act on the Insurance Industry

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