A District Court has entered an Order adopting a Magistrate Judge's Report and Recommendation, denying a motion to dismiss, for lack of personal jurisdiction, filed by a guarantor of a quota share reinsurance agreement. Sirius America Ins. Co. v. SCPIE Indemnity Co., Case no. 05-7923 (USDC S.D.N.Y. Nov. 1, 2006). The Report & Recommendation was the subject of an October 5 posting on this blog. The Order recites that the Court had not received any objections to the Report & Recommendation.
Jurisdiction Issues
Court of Appeal holds that California Court had personal jurisdiction over London insurance broker
A California Court of Appeals, reversing a lower court's decision, has held that the state court could exercise personal jurisdiction over Sedgwick Group Ltd., an English insurance broker which had provided brokerage services for a California excess and surplus lines insurance broker for at least 50 years. The Court found that Sedgwick had “enjoyed decades of profit as a result of purposeful and deliberate business practices aimed at California residents.” In finding the exercise of personal jurisdiction over Sedgwick proper, the Court cited, as being of particular relevance, a Ninth Circuit case that dealt with personal jurisdiction over a London-based insurance broker. Harris Rutsky & Co. Ins. Serv., Inc. v. Bell & Clements, 328 F.3d 1122 (9th Cir. 2003). Swett & Crawford v. Sedgwick Group Ltd., Case No. B183940 (Cal.Ct.App. Oct. 11, 2006).
Court denies motion for dismiss for lack of personal jurisdiction
A United States Magistrate Judge has recommended the denial of a motion to dismiss filed by a California reinsurer of the obligations of a New York reinsured under a bond quota share reinsurance agreement. Sirius America Insurance Co. v. SCPIE Indemnity Co., Case no. 05-7923 (S.D. N.Y. Sept. 3, 2006). The Court relied heavily on the fact that payments under the reinsurance agreement would only benefit the New York reinsured.
Court dismisses case against Equitas entities for lack of jurisdiction
A US District Court, which had twice before denied motions to dismiss for lack of personal jurisdiction filed by Equitas Holdings Limited, Equitas Reinsurance Limited and Equitas Limited, has granted a motion to dismiss on the same ground filed by the same entities in a third case seeking arbitration of issues arising out of the denial of reinsurance claims. Employers Insurance Company of Wausau v. Equitas Holdings Limited, Case no. 06-291 (W.D. Wisc. Sept. 12, 2006). The Court found that the factual record before it in the prior cases had not been fully developed, and that it was joining the majority of courts that had ruled on this issue.
Court dismisses case against Equitas for lack of jurisdiction
A US District Court, which had twice before denied motions to dismiss for lack of personal jurisdiction filed by Equitas Holdings Limited, Equitas Reinsurance Limited and Equitas Limited, has granted a motion to dismiss filed by the same entities in a third case seeking arbitration of issues arising out of the denial of reinsurance claims. Employers Insurance Company of Wausau v. Equitas Holdings Limited, Case no. 06-291 (W.D. Wisc. Sept. 12, 2006). The Court found that the factual record before it in the prior cases had not been fully developed, and that it was joining the majority of courts that had ruled on this issue.