On August 28, 2009, Delta Financial Corp. (“Delta”) filed a Notice of Appeal to the United States Court of Appeals for the Third Circuit seeking to overturn the dismissal of its coverage action against Westchester Surplus Lines Insurance Co. (“Westchester”) and United States Fire Insurance Co. (“USFI”).
Read More Delta Financial Appeals Denial of D&O Coverage Based on Inadequate Consideration (“Bump Up”) Exclusion

The Eleventh Circuit Court of Appeals has found that the district court has subject matter jurisdiction over securities claims brought by “F-Cubed” plaintiffs– i.e., a foreign investors who purchased shares in a foreign company on a foreign stock exchange. 

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Read More The Eleventh Circuit Finds Subject Matter Jurisdiction Over “F-Cubed” Plaintiffs

On November 17, 2008, the Securities and Exchange Commission charged Dallas Mavericks’ owner, Mark Cuban, with insider trading.  For those non-sports fans, the Dallas Mavericks is a professional basketball team, and Mark Cuban is the team’s widely outspoken billionaire owner. …
Read More Mark Cuban Demands That The SEC Pay His Legal Fees

The Panama Canal Authority (ACP) has reportedly indicated that it expects its total insurance coverage needs for the expansion of the Panama Canal to exceed $100 million.  The ACP has retained Willis Limited to broke the coverage and has already established that interested insurers must carry a minimum rating of A- (A.M. Best, S&P or Fitch) or A3 (Moody’s). 

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Read More Insurance Coverage Required for Expansion of Panama Canal Expected to Exceed $100 Million

This updates our June 30, 2009 blog post.  The recently proposed Eleventh Amendment (the “Amendment”) to Regulation 41 (11 NYCRR 27), which governs the standards for excess lines placement, became effective on September 2, 2009.  The Amendment placed several additional categories of risks insured by excess lines carriers on the New York Export List. 

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Read More New York Expands Export List

Costa Rica – As reported previously in this space (see here), Costa Rica’s Instituto Nacional de Seguros’ international expansion plans were put on hold in May 2009 when the nation’s Comptroller General took the position that the INS was empowered only to partner with, not acquire or establish, foreign companies. …
Read More Latin American Insurance and Reinsurance Update: Costa Rican INS Revives International Expansion Plans; Double-Digit Market Growth in Ecuador and Peru; IRB Earnings Decline 55.7% in Brazil

The Connecticut Supreme Court recently reversed a judgment that had been in favor of an automobile insurer in a breach of contract action brought by glass repair companies who had been assigned the rights of the defendant’s insureds. …
Read More Connecticut Supreme Court Finds Automobile Insurance Policy Language Ambiguous

According to press reports, Atticus Capital announced recently that it would shut down two of its three funds and liquidate their $3 billion in holdings. The company’s founder cited personal reasons for this action. The two funds had a heavy concentration in the financial sector, which resulted in significant losses last year. Atticus will continue to manage the $1.2 billion Atticus European Fund. …
Read More Hedge Fund Closes Two of its Funds and Liquidates Holdings

In a decision filed August 6, 2009, the U.S. Court of Appeals for the Fifth Circuit affirmed the district court’s denial of a request under 28 U.S.C. § 1782 for discovery for use in a private international arbitration proceeding.  Section 1782 provides a mechanism by which parties to a foreign or international proceeding may petition a federal district court to order a party residing in that district to provide documentary or testimonial evidence to a foreign or international tribunal. …
Read More Fifth Circuit Affirms Denial of Request for Discovery for Use in a Private International Arbitration Proceeding Pursuant to 28 U.S.C. § 1782