CASE UPDATE: INSURERS ENTITLED TO HEARING ON AMOUNT OF PRE-PLEADING SECURITY
In a prior posting (dated 7/24/2006) this blog reported on a Connecticut Supreme Court decision reversing the dismissal of an appeal by the Court of Appeals, holding that the denial of pre-pleading security was an appealable final judgment, and remanding the case to the Court of Appeals for consideration of the merits of the appeal. The trial court had determined that the relevant statutory text required service to be made on the insurance commissioner or the secretary of the state and precluded service made on the unauthorized insurers’ contractually designated agents for service of process. On remand, the court of appeals disagreed with the trial court’s judgment in favor of the defendant insurers. However, the court was persuaded that on remand, for constitutional reasons, the defendant insurers are entitled to a hearing regarding the amount of pre-pleading security that they must provide. Hartford Accident and Indemnity Co. v. Ace American Reinsurance Co., AC 25661 (Ct. Ct. App. Aug. 14, 2007).
