-
January 22, 2024
NEW ORLEANS — A Louisiana federal judge granted partial dismissal to the Louisiana Insurance Guaranty Association (LIGA), which was substituted for an insolvent homeowners insurer, in a breach of contract suit over damages from Hurricane Ida, finding that the claims for bad faith, mental anguish, penalties, pre-insolvency costs and interest must be dismissed because they are not covered claims for which “LIGA is the statutory successor.”
-
January 19, 2024
CINCINNATI — An Ohio federal judge denied dismissal of a breach of contract suit filed against a life insurer by the liquidating trustee for a viatical settlement provider, finding that the complaint was timely filed because Ohio law applies to the dispute over a “leapfrogging” life insurance policy that was sold to the trust.
-
January 18, 2024
WILMINGTON, Del. — The Official Committee of Unsecured Creditors on Jan. 17 asked a Delaware federal bankruptcy court to reclassify 49 disputed claims so the joint provisional liquidators (JPLs) that submitted them can’t vote on the committee’s Chapter 11 plan of liquidation for Vesttoo Ltd. and 48 affiliates.
-
January 17, 2024
NEW CASTLE, Del. — All claims and counterclaims in a defense costs dispute in the Delaware Superior Court that centers on whether reinsurer Alpha Re’s 2018 liquidation triggered an exclusion have been dismissed without prejudice under a stipulation in which the parties reported entering into an unspecified “Tolling & Standstill Agreement.”
-
January 17, 2024
RALEIGH, N.C. — The North Carolina Supreme Court granted a one-day extension to the purchaser of now-insolvent insurers and his affiliated companies to respond to a motion for clarification of the high court’s order granting a petition for supersedeas regarding an appellate court’s decision affirming a judgment for fraud.
-
January 16, 2024
WILMINGTON, Del. — Policyholders who filed a Delaware Uniform Fraudulent Transfer Act (DUFTA) suit over what they allege were fraudulent transfers from an insurance subsidiary on which more than 1 million policyholders depend for long-term care (LTC) disability benefits filed a motion on Jan. 12 in Delaware Chancery court for class certification.
-
January 11, 2024
RALEIGH, N.C. — A Puerto Rico-based insurer petitioned the North Carolina Supreme Court to review an appeals court decision that vacated a lower court injunction enjoining the owner of insolvent insurers from withdrawing without the North Carolina Insurance commissioner’s consent more than $5,000 from any entity controlled by the owner in an enforcement action for a $524 million judgment, arguing that the appellate court decision is contrary to Supreme Court precedent.
-
January 09, 2024
HARRISBURG, Pa. — A Pennsylvania appellate court judge issued an order granting an application for approval of a settlement agreement and approved the settlement agreement filed by the Pennsylvania insurance commissioner to settle the claims against Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Co., companies in liquidation, made by various state guaranty associations responsible for satisfying the companies’ policy obligations.
-
January 04, 2024
OMAHA, Neb. — Evaluating proof of claims in separate liquidation proceedings “is expected to take several years,” a defendant told a Nebraska federal court in its latest status report in a suit over the $157.2 million settlement National Indemnity Co. (NICO) reached with Montana regarding alleged asbestos exposures.
-
January 02, 2024
WILMINGTON, Del. — A Delaware federal bankruptcy judge who is allowing the Official Committee of Unsecured Creditors to put its Chapter 11 plan of liquidation for Vesttoo Ltd. and 48 affiliates to a vote also granted its motions for leave to conduct discovery against two banking organizations.
-
January 02, 2024
NEW YORK — A co-founder of the collapsed hedge fund Platinum Partners who argued that application of New York offset law should reduce his liability to zero has withdrawn his Second Circuit U.S. Court of Appeals challenge to a ruling that left him liable for just under $2.8 million.
-
December 20, 2023
DENVER — A Colorado state court judge granted a motion to withdraw filed by counsel for Friday Health Plans Management Services Co. Inc. (FHP MSC), a subsidiary of insolvent health insurer Friday Health Plans Inc. (FHP), in a breach of contract suit filed by FHP’s co-founder and former president, seeking severance after he was terminated purportedly without cause.
-
December 20, 2023
GREENSBORO, N.C. — A North Carolina federal magistrate judge on Dec. 19 issued a docket-only order requiring insurance agents and agencies to file a motion to seal in a consolidated class action against a purported holding company for an insolvent insurer and the insurer’s owner, asserting that the holding company breached the contract with the agents and agencies by failing to pay them commissions pursuant to their contracts.
-
December 19, 2023
NEW ORLEANS — A Louisiana federal judge dismissed an appeal by two asbestos law firms of a federal bankruptcy court’s approval of a $1 million settlement between the Chapter 7 trustee for a bankrupt insulation supplier and the Louisiana Insurance Guaranty Association (LIGA) after the parties said in a joint motion to dismiss that they have “resolved their differences.”
-
December 19, 2023
RALEIGH, N.C. — The North Carolina Supreme Court granted discretionary review to the purchaser of now-insolvent insurers and his affiliated companies’ regarding an appellate court’s decision affirming a judgment for fraud in a breach of contract suit.
-
December 19, 2023
WILMINGTON, Del. — The Official Committee of Unsecured Creditors on Dec. 18 filed an amended proposed combined disclosure statement and Chapter 11 plan of liquidation for the jointly administered cases of Vesttoo Ltd. and 48 affiliates in Delaware federal bankruptcy court.
-
December 18, 2023
NEWARK, N.J. — After all parties in a suit over environmental investigation and remediation briefly weighed in on the implications of a different court’s liquidation order pertaining to one defendant, a New Jersey federal magistrate judge delayed a status conference and granted that defendant “leave to file a motion for relief relating to the Liquidation Order.”
-
December 18, 2023
NEW ORLEANS — A flood insurer that was sued for breach of contract for its alleged failure to adequately cover claims related to Hurricane Ida submitted to a federal court a notice advising that the remaining parties are the insured, flood insurer and Louisiana Insurance Guaranty Association (LIGA), as statutory successor for an insolvent homeowner’s insurer.
-
December 18, 2023
LAFAYETTE, La. — A Louisiana federal judge granted a woman’s motion to dismiss a hurricane coverage suit against her insolvent homeowners insurer, agreeing with a magistrate judge’s recommendation to dismiss the case after the judge suspended the homeowner’s legal counsel upon discovering that they had made duplicate filings in other cases related to Hurricanes Laura and Delta.
-
December 14, 2023
WILMINGTON, Del. — In two Dec. 13 filings citing Israeli law and other issues, Vesttoo Ltd. and its affiliated debtors and a venture capital organization and individual that report significant related interests urge a Delaware federal bankruptcy court not to approve a Chapter 11 plan of liquidation and related arrangements as currently proposed.
-
December 14, 2023
WEST PALM BEACH, Fla. — A Florida state court deputy clerk issued a notice stating that homeowners’ motion for default will not be granted against the Florida Insurance Guaranty Association (FIGA) in a breach of contract suit filed against it and their insolvent insurer related to purported water damage from a leaking dishwasher.
-
December 14, 2023
RALEIGH, N.C. — A North Carolina appeals court vacated a lower court injunction enjoining the owner of insolvent insurers from withdrawing without the North Carolina Insurance commissioner’s consent more than $5,000 from any entity controlled by the owner in an enforcement action for a $524,009,051.26 judgment, finding that the lower court lacked jurisdiction to issue the injunction.
-
December 14, 2023
LAFAYETTE, La. — A Louisiana federal judge dismissed a hurricane coverage suit, concurring with a magistrate judge’s report and recommendation to grant a homeowner’s motion for dismissal against his now-insolvent insurer after the judge suspended the homeowner’s legal counsel for purported insurance fraud related to alleged misconduct in filing hurricane-coverage suits.
-
December 14, 2023
AUSTIN, Texas — A Texas state court judge granted the Texas Department of Insurance’s (TDI) application to place Bright Healthcare Insurance Company of Texas into liquidation, appointing the state insurance commissioner as receiver and issuing an automatic stay in any proceeding against the insurer.
-
December 14, 2023
NEW ORLEANS — A Louisiana federal judge denied a homeowner’s motion to remand to state court his breach of contract and bad faith suit against his now-insolvent insurer alleging that the insurer failed to cover damage from Hurricane Ida, finding that because the homeowner did not amend his complaint to add the Louisiana Insurance Guaranty Association (LIGA) as a defendant, there is still “complete diversity between the parties.”