We previously reported on May 5, 2010, June 21, 2010 and January 7, 2011 about litigation between Pacific Employers Insurance Company and Global Reinsurance, relating to their dispute over a facultative reinsurance agreement covering certain underlying asbestos-related injury claims. After discovery, Pacific Employers moved to strike certain portions of Global’s affirmative defenses. Global opposed the motion. The court invoked its discretion to hear the untimely Rule 12(f) motion, but limited review to the pleadings only. The court granted the motion in part and denied it in part. The court ordered stricken a paragraph pertaining to prejudice arising from Pacific Employer’s late claim notice, as Global had since abandoned any claim of prejudice. The court, however, did not strike paragraphs relating to Global’s affirmative defense of breach of the duty of utmost good faith. Global did not waive the defense, and that the defense was inextricably linked with Global’s late notice defense, the case’s central issue. Pacific Employers Insurance Company v. Global Reinsurance Corp. of America, No. 09-6055 (USDC E.D. Pa. Apr. 18, 2011).
This post written by John Pitblado.