Earlier this month, a federal court in Illinois denied a motion to transfer a case to California. The motion arose out of a reinsurance dispute between the R&Q Reinsurance Company and American Insurance Company. R&Q filed its case in the Illinois federal court, and American moved to transfer the case to California, arguing that R&Q was seeking to “avail itself of Illinois’ notice laws, which arguably provide reinsurers with a less onerous path to avoid their obligations on late notice grounds.” R&Q argued that the case should remain in Illinois, among other reasons, because R&Q was based in Illinois and the reinsurance contracts were executed there. Additionally, R&Q argued that to the extent that AIC’s records were electronic, those documents and that data is “as much present in Illinois” as in California. However, R&Q noted that “this action arises out of events that transpired in at least three, and possibly 5 different states.” American replied that the key witnesses were “either in California or outside of Illinois,” continuing to make its case for a transfer to California. After an oral hearing, the court denied the American’s motion to transfer, keeping the case in Illinois. R&Q Reinsurance Co. v. American Insurance Co., Case No. 1:16-cv-4199 (USDC N.D. Ill. July 11, 2016).
This post written by Zach Ludens.
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