COURT DISMISSES PORTIONS OF CAPTIVE REINSURANCE CASE
We previously posted on a putative class action filed in federal court in California alleging violations of the Real Estate Settlement Procedures Act in the placement of private mortgage insurance and its reinsurance with captive reinsurance companies. After partially lifting a stay put in place pending a deicison by the United States Supreme Court in a pending case, the district court has dismissed, with prejudice, claims against what it terms non-contracting parties, finding that the plaintiff lacked standing to bring such claims and that, in the alternative, the claims were barred by the applicable statute of limitation. The court found that the Complaint at best alleged parallel threads of misconduct rather than an overall “captice reinsurance scheme.” Claims against other defendants were dismissed with leave to amend. McCarn v. HSBC USA, Inc., Case No 12-375 (USDC ED Cal. Nov. 13, 2012).
This post written by Rollie Goss.
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