A Court has denied a motion to dismiss claims alleging that KPMG Bermuda had failed to perform adequate audits of Annuity & Life Re (Holdings), Ltd. since the company had failed properly to account for certain retrocessional insurance. Schnall v. Annuity & Life Re, Case No. 02-2133 (D. CT. Aug. 30, 2006). The Court had previously dismissed similar claims asserted against KPMG US, since the audits were performed by KPMG Bermuda.
UK – settlement agreement does not impair reinsurance
A UK Chancery Court has held that by entering into collateral settlement agreements relating to asbestos-related personal injury claims, a party did not violate provisions of various reinsurance agreements. Curzon Insurance Limited v. Centre Reinsurance International Company, [2005] EWHC 2991 (Ch) (December 21, 2005). The Court stated that the rights of the reinsurers under the reinsurance agreements were not impaired by the settlements.
Arbitration panel not required to give prior arbitration award preclusive effect
The Connecticut Supreme Court, following one of its own 1999 decisions, has held that an arbitration panel is not required to give preclusive collateral estoppel effect to a prior arbitration award, even where the prior award involved the interpretation of the same provision of a contract between the same parties. LaSalla v. Doctor's Associates, Inc., SC 17483 (Conn. June 13, 2006). The Court held that the desire to maintain the flexibility of the arbitral process was more important than the desire to promote the stability and finality of judgments in this context, noting in dicta that a specific provision in the contract to the contrary might have led to a different result.
US allowed to interevene in broker liability case to contest disclosure of audit report
A US Magistrate Judge has granted the United States permission to intervene in an MDL broker liability case to contest the disclosure of a report which it contends contains statements of potential Government witnesses in a pending criminal case, where the statements would not be subject to disclosure in the criminal action. In re Insurance Brokerage Antitrust Litigation, MDL No. 1663 (D.N.J. July 12, 2006). The Government sought a stay of the disclosure until the conclusion of the criminal matter, which had been brought by indictment. The Court required in camera submissions prior to making a decision on the request for a stay of discovery of the report.
NASD arbitration award by default confirmed
A US District Court has confirmed an arbitration award entered in an NASD arbitration in unusual circumstances: Petitioner failed to present any evidence in an attempt to force a postponement of the final hearing. The Panel denied the request for a postponement, at which time counsel for Petitioner left the hearing. The Panel reconvened the next day to permit Petitioner to offer evidence, which it failed to do. The Panel later dismissed the claims for lack of evidence. The Court found that Petitioner's failure to proceed was not misconduct by the Panel. Kober v. Kelly, Case No. 06-3341 (USDC S.D.N.Y. July 18, 2006).