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In OneBeacon America Insurance Co. v. Swiss Reinsurance America Corporation, 09-CV-11495-PBS (D.Mass. December 23, 2010), a motion was brought by petitioner OneBeacon to vacate an arbitration award on the basis that the arbitrators were guilty of misconduct for refusing to permit necessary discovery and hear certain evidence. The main issue in the arbitration itself concerned contract interpretation, but OneBeacon relied upon industry custom and practice to support its case. …
Read More Massachusetts Federal Court Addresses Manifest Disregard of the Law Standard, Finds that Panel’s Decision to Limit Discovery and Witness Testimony did not Provide a Basis to Vacate Award

In Columbia Casualty Co. v. Gordon Trucking Inc. et al., No. 09-CV-05441, 2010 WL 5141865 (N.D. Cal. Dec. 13, 2010), a truck owned by the insured was involved in a severe car accident. The insured had a $5 million primary policy, a $5 million first layer excess policy, a $20 million second layer excess policy, and a $20 million third layer excess policy. After its initial claim review, the first layer excess carrier told the insured that it did not believe its layer would be impacted by the underlying personal injury suit arising from the car accident. …
Read More Excess Insurer Required to Show Actual Prejudice to Avoid Paying Settlement it did not Consent to

We recently blogged about the Second Circuit’s decision in Arrowood Surplus Lines Ins. Co. v. Westport Ins. Corp., No. 10-cv-0397 (2d Cir. 2010), in which an appellate panel held that a reinsurer had no obligation to indemnify its cedent for losses outside the scope of the treaty at issue.  Click here to review a copy of that blog post.
Read More Second Circuit Denies Cedent’s Motion for a Rehearing in Follow the Fortunes Case

In Council Tower Ass’n v. Axis Specialty Ins. Co., No. 09-3900, 2011 WL 31519 (8th Cir. 2011), the Eight Circuit considered whether, under Missouri law, the falling of seven stories of a twenty-six-story exterior brick veneer was a covered “collapse” of a building. …
Read More Eighth Circuit Holds that the Collapse of Seven Stories of Decorative Brick Veneer is Not a “Collapse of a Part of a Building”

In Goldman Sachs Execution & Clearing, L.P. v. The Official Unsecured Creditors’ Committee of Bayou Group, LLC, et al., Slip Copy, 2010 WL 4877847 (S.D.N.Y. 2010), the court denied petitioner’s motion to vacate a $20.580 million award obtained in a FINRA arbitration by The Official Unsecured Creditors’ Committee of Bayou Group (“OUCCBG”). …
Read More New York Federal Judge Provides Interesting Insights Regarding Arbitration and “Manifest Disregard of the Law”

Inez Tenenbaum, the head of the U.S. Consumer Product Safety Commission, said this week that the U.S. has not been able to persuade Chinese officials to agree to compensate U.S. homeowners for losses associated with Chinese manufactured drywall. …
Read More Chinese Drywall – Manufacturers Still Refusing to Compensate U.S. Homeowners

In Amerisure Mutual Insurance Co. v. Albanese Popkin the Oaks Development Group L.P., 2010 U.S. Dist. LEXIS 125918 (Nov. 30, 2010), Judge Kenneth A. Marra of the U.S. District Court for the Southern District of Florida ordered that the developer’s insurer has no duty to provide coverage or a defense for claims related to Chinese drywall, which were made against the developer. …
Read More Chinese Drywall – Florida Federal District Court Finds No Coverage Under CGL Policy

Suffolk Federal Credit Union (“SFCU”) brought an action against Cumis Insurance Society to recover certain losses arising under a fidelity bond.  During discovery, SFCU served interrogatories, that included a request that Cumis disclose the identity of any reinsurance agreement that might indemnify Cumis for the losses at issue. …
Read More Federal Court Orders Insurer to Produce Reinsurance Information, Despite Acknowledging Split Among Courts on the Issue

On January 6, 2011, New Jersey Governor Chris Christie signed legislation on the Interstate Insurance Product Regulation Compact (the “Compact”).  With the passage of this legislation, New Jersey becomes a member of the national commission that develops uniform standards and consumer protections for asset-based insurance products (e.g., life insurance, annuities, disability income and long-term care insurance).  The Compact also establishes a clearinghouse for review of these product filings. …
Read More New Jersey Joins the Interstate Insurance Product Regulation Compact