COURT FINDS CLAIMS RELATING TO REINSURANCE PLACEMENT BARRED BY STATUTE OF LIMITATION
Gerling Global Reinsurance alleged that it was “lured” to provide reinsurance through material misrepresentations and omissions and instituted arbitration against Fremont Indemnity Company. After reaching a settlement with Fremont Indemnity, Gerling sued Fremont General Corporation, Fremont Compensation Insurance Group and Louis Rampino, alleging that they had participated in a scheme to increase the premium revenue of Fremont Indemnity, seeking to recover the balance of its losses not recovered in the settlement with Fremont Indemnity. Gerling contended that the running of the statute of limitations was tolled because the defendants were alter egos of Fremont Indemnity. Both the district court and the Ninth Circuit Court of Appeals disagreed, finding that the causes of action against all of the parties accrued at the same time, and that there was no tolling of the running of the statutes of limitation on the claims against Fremont General Corporation, Fremont Compensation Insurance Group and Louis Rampino during the arbitration with Fremont Indemnity. Gerling Global Reinsurance Corporation of America v. Fremont General Corp., No. 07-55198 (USCA 9th Cir. June 24, 2008).
This post written by Rollie Goss.
