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.
Reinsurance Claims
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.
Summary judgment granted on surety bonds despite forgery claim
A Court has granted summary judgment on most claims relating to surety bonds that secured obligations under premium finance agreements. Westrm-West Risk Markets, Ltd. v. XL Reinsur. America, Inc., Case No. 02-7344 (USDC S.D. N.Y. July 19, 2006). The claims were complicated by allegations that the signature of the broker's representative were forged on some of the documents.
Insured may not maintain action against reinsurer
A pro se plaintiff had insurance with Chubb Insurance Group, which was reinsured by GE Employers Reinsurance. After her RICO action against Chubb was dismissed, she filed a RICO action against GE. The District Court dismissed the action, based in part on the general rule that an insured can not maintain an action directly against a reinsurer. Kuhn v. Kehrwald, Case No. 05-1228 (E.D. Wis. Aug. 4, 2006). The opinion describes the Plaintiff's submissions as “incoherent and filled with invective ….” Although she alleged that her business suffered a “mysterious loss of funds,” she was convicted of stealing money from the business and its clients.
Court of Appeal affirms summary judgment in favor of Lloyd’s against Name
The United States Court of Appeals for the District of Columbia Circuit has affirmed a summary judgment in favor of the Society of Lloyd's, enforcing an English judgment against a Lloyd's Name who refused to sign on with and pay reinsurance premium to Equitas. Society of Lloyd's v. Siemon-Netto, Case no. 04-7214 (D.C. Cir. August 8, 2006). At oral argument, the Names made it clear that “the underlying basis of their defense is their belief that the English courts have a 'bias and prejudice in favor of Lloyd's under circumstances which make it impossible for a Name to win.'” Under the Uniform Foreign Money Judgments Recognition Act, a foreign judgment may not be enforced if it was “rendered under a system that does not provide impartial tribunals or procedures compatible with the requirements of due process of law.” The Names did not go so far as to seek the application of this principle, but the Court noted that if they had attempted to do so, they would have failed. The only evidence of “bias and prejudice” was that other Names who had advanced the same position as Appellants had lost their cases, and the mere fact that they had lost did not establish improper partiality. Indeed, the Court noted that “the fact that Names have lost similar (albeit not identical) cases in eight United States Courts of Appeals … would require us to reach the same conclusion regarding American courts.” With that closing statement, the Court affirmed the District Court's ruling. Carlton Fields represented the Society of Lloyd's in this case.