DISMISSAL REVERSED IN NEW YORK RETROCESSIONAL REINSURANCE CASE
Global Re filed a suit in the New York Supreme Court alleging that Equitas (and a number of co-defendants) were the hub of a conspiracy in violation of New York state antitrust law. The market in question is a worldwide market for non-life retrocessional reinsurance coverage, including the purchase, sale, and service of such coverage. Following a dismissal of the action for lack of an antitrust injury, plaintiff appealed. The Supreme Court Appellate Division reversed the dismissal, finding plaintiff’s allegations sufficient to survive a motion to dismiss. The Court specifically held that Global Re sustained antitrust injury because the quality of what it purchased (retrocessional coverage) was adversely affected by an agreement eliminating competition over claims handling. Global Reinsurance Corp. v. Equitas Ltd., Case No. 600815/07 (N.Y. Sup. Ct. Jan. 18, 2011).
This post written by John Black.
