COURT AGREES TO STAY REINSURANCE DISPUTE PENDING OUTCOME OF APPEAL IN UNDERLYING COVERAGE CASE
A federal district court in Missouri granted the parties’ joint motion to stay their reinsurance dispute, pending the outcome of an appeal taken in an underlying coverage action in which the reinsured, Continental Casualty Company (“CCC”), suffered a $23,072,979 jury verdict against it. The underlying plaintiff, Black & Veatch Construction Company, suffered a loss in the construction of a power plant in Missouri. It sought coverage from its insurer, CCC, in connection with the loss. CCC declined coverage and Black & Veatch sued. CCC has appealed the judgment. The collateral reinsurance dispute between CCC and its alleged Global Builders Risk Facility reinsurance treaty was brought in Missouri federal court by CCC. The parties also moved to stay an identical action filed in the U.K. Commercial Court by the defendant reinsurers. Both joint motions were based on the fact that, if CCC were successful in reversing the underlying judgment against it, it would make much of the remaining dispute between the parties moot. The Court granted the motion on June 8, 2009. Continental Cas. Co. v. AXA Global Risks (UK) Ltd., No. 09-00335 (USDC W.D. Missouri, June 8, 2009).
This post written by John Pitblado.
