Our prior discussion of this case, and relevant background, can be found here. In 2012, Pine Top Receivables of Illinois, LLC (“PTRIL”) brought an action against Banco de Seguros del Estado (“Banco”) to recover sums purportedly due under certain reinsurance treaties. Banco moved for summary judgment on the grounds that claims were time-barred. Each of the treaties governed how the parties would settle claims between them. Four of the five treaties at issue mandated quarterly account statements, with Banco typically required to either object to the claims referenced in the statement after receipt thereof or pay the outstanding balances within three months of the end of each quarter. Under the fifth treaty, the balance for claims owed thereunder became “immediately due” once proof of the underlying loss payment was provided to Banco.
Banco argued that the subject claims accrued, and the operative statute of limitations period began, once payments became due under the above-referenced provisions. As all of the claims at issue in the lawsuit were billed to Banco outside the applicable limitations period, Banco argued that the claims were time-barred. In opposition, PTRIL asserted that the original cedent’s entrance into liquidation tolled the running of the statute of limitations for the subject claims. The court, however, rejected this argument, holding that the relevant provisions in the treaties governed the date on which the claims accrued, without regard to the cedent’s liquidation, thus rendering the claims untimely under Illinois law. Pine Top Receivables of Illinois, LLC v. Banco de Seguros del Estado, No. 12-cv-6357 (USDC N.D. Ill. May 31, 2016).
This post written by Rob DiUbaldo.
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