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

Mechanical Dynamics & Analysis, LLC (“MD&A”) performed repairs on a generator at a power plant owned by the Arizona Public Service Company (“APS”).  Thereafter, the generator failed and was out of service for 111 days, resulting in a loss of more than $20 million for APS. …
Read More Federal Court Orders Insurer to Produce Information about its Reinsurance Agreements

Edwards Angell Palmer & Dodge’s Insurance and Reinsurance Department recently published its latest Newsletter, Insurance & Reinsurance Review – September 2009, which contains nine articles about various topics in the insurance and reinsurance industry. …
Read More Insurance & Reinsurance Review – September 2009

On 1 September 2009, the General Insurers’ Technical Provisions (Appropriate Amount) (Tax) Regulations 2009 (the Regulation) comes into force in the UK (for a link to the Regulation please click here). 

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Read More UK: Incoming Regulations May Increase Actuarial Costs

In the 2009 Budget, on 22 April 2009, the Chancellor announced the introduction of a Government-backed  ‘top-up’ trade credit insurance scheme aimed at addressing the challenges that UK businesses were facing as a result of the reduction in availability of trade credit insurance (the Scheme). 

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Read More UK: Changes to UK Trade Credit Insurance Top Up Scheme

On July 20, 2009, the US District Court for the Northern District of Alabama granted the defendants motion to dismiss in a shareholder derivative action that named the directors and officers of Colonial Bancgroup as defendants. 

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Read More Colonial Bancgroup Subprime Shareholder Derivative Action Dismissed

The First Circuit recently affirmed the decision of the United States District Court for the District of Maine to deny American National Fire Insurance Company’s (“ANFIC”) plea for recoupment of a settlement payment made by ANFIC to York County Jail.  ANFIC argued that it was entitled to a per-claim deductible, which negated its settlement payment. …
Read More First Circuit Upholds Decision to Deny Insurer Recoupment of Deductibles Following Class Action Settlement

Legislation recently introduced in the United States Senate could help homeowners haul foreign manufacturers of allegedly defective Chinese drywall into court.  The Foreign Manufacturers Legal Accountability Act of 2009, introduced by Senators Sheldon Whitehouse (D- RI), Jeff Sessions (R-AL) and Dick Durbin (D-IL), seeks to make it easier to bring foreign companies before American courts. 

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Read More Chinese Drywall – Senate Bill Could Facilitate Effecting Service of Process on Foreign Defendants