Default judgment against Bermuda subsidiary not binding on US parent
A District Court has held that a $1.5 million default judgment entered against a Bermuda insurance company that had been placed in liquidation in Bermuda was not enforceable against its Arizona-domiciled parent company. Significant factual background to the ruling may be found in a motion for summary judgment. Employers Reinsurance Corp. v. Guaranteed Financial Corp., Case No. 04-884 (D. Az. Sept. 26, 2006). A major basis for the ruling was the fact that the Bermuda authorities had siezed control of the Bermuda-domiciled company, and that the parent therefore had lost any ability to control the litigation in which the default had been entered.
