New York Developments

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In response to recent investigations of reimbursements of out-of-network treatment, New York Governor Paterson announced a proposed regulation that will require health and accident insurers, including health maintenance organizations (collectively, “insurers”), to inform insureds as to the actual reimbursement amount for out-of-network treatment before receiving such treatment. 

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Read More New York Announces Proposed Regulation on Health Insurance Reimbursements

Petitioner Global Reinsurance Corporation of America (“Global”) and its predecessor companies provided reinsurance coverage to Home Insurance Company.  Global reinsured its contracts with Home by obtaining retrocessional reinsurance coverage from, among others, respondent Argonaut Insurance Company (“Argonaut”). …
Read More New York Federal Court Confirms Arbitration Award Requiring a Retrocessionaire to Reimburse a Reinsurer for IBNR Claims, but Recognizes the Viability of Manifest Disregard of the Law

Eric R. Dinallo, Superintendent of the New York Insurance Department, recently proposed an amendment to Regulation 41 (11 NYCRR 27) that governs the standards for excess lines placement (the “Proposed Regulation).  The Proposed Regulation seeks to include additional risks to be insured by excess lines carriers on the New York Export List. …

Read More New York Export List Proposed Regulation

In Woodworth v. Erie Insurance Company, No. 05-CV-6344CJS (Jun. 12, 2009), the federal district court for the Western District of New York held that recovery of consequential damages under Bi-Economy Mkt., Inc. v. Harleysville Ins. Co. of NY, 10 N.Y. 3d 187 (2008), is not limited to commercial property insurance claims. …
Read More NY Federal Court: Availability of Consequential Damages Not Limited to Commercial Property Insurance

Wyeth, a pharmaceutical and health care product manufacturer, purchased 20% of its excess product liability insurance from one insurer in the 1980s.  Starting in 1988, a subsidiary of Wyeth, John Wyeth & Brother, Ltd., was named as a defendant in over 11,000 product liability actions in the United Kingdom and Ireland because of its manufacture and prescription of Ativan and other drugs containing benzodiazepine. 

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Read More Southern District of New York Holds Excess Insurer Liable for Reimbursement of Foreign Defense Costs, Despite Policy’s Exclusion of Duty to Defend

In a recent decision of the United States District Court for the Eastern District of New York, Apple & Eve, LLC v. Yantai North Andre Juice Co., Ltd., No. 07-CV-745 (JFB)(WDW) (E.D.N.Y. April 27, 2009), the Court found that the defendant had waived its right to arbitration, thereby rendering the arbitration clause null and void under Article II of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”). 

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Read More E.D.N.Y Rules that Party Waived Right to Arbitrate in China

New York’s highest court recently held that an exclusion for “earth movement” in a property policy did not exclude coverage for damage to the policyholder’s building that resulted when excavation of the adjacent lot caused earth to slide away beneath the insured building. 

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Read More New York Court of Appeals: Earth Movement Exclusion Does Not Apply to Damage Caused by Adjacent Lot Excavation

On Thursday, May 28, 2009, it was announced that Eric Dinallo, Superintendent of the New York State Insurance Department (“NYSID”), intends to resign effective as of July 3, 2009.  Dinallo has accepted a position as a visiting professor at New York University’s Stern School of Business. …
Read More New York Insurance Superintendent Eric Dinallo Resigns

Utopia Studios, Ltd., a New York corporation, retained Earth Tech, Inc., a California corporation with offices worldwide, to provide engineering and consulting services in connection with the development of a property.  The parties’ relationship was governed by a Master Services Consulting Agreement (“MSA”) that included, among other terms, a broad arbitration provision. 

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Read More New York Federal Court Compels Party to Arbitrate, Despite the Fact that Party Claimed to be a Nonsignatory to the Relevant Arbitration Agreement

In the Matter of Trader Pro LLC v. Pires, No. 012334/09 (N.Y. Sup. Ct., Apr. 16, 2009), the Petitioners moved for an order pursuant to CPLR 3102[c] for the issuance of pre-arbitration subpoenas to the Respondents, in order to determine the identity of other potential parties for an arbitration that Petitioners intended to commence. …
Read More New York State Court Orders Pre-Arbitration Discovery in Aid of Contemplated Arbitration