COURT DEALS ANOTHER BLOW TO ASSIGNEE OF LIQUIDATED CAPTIVE IN CONTINUING REINSURANCE DISPUTE
A federal court dismissed claims brought by the putative assignee of rights from a previously liquidated captive insurer, against the defendant reinsurer, for alleged payment dispute under reinsurance treaties issued by the defendant to the captive between 1977 and 1986. The plaintiff petitioned to compel arbitration in 2012, and this blog has reported on the court’s denial of plaintiff’s request that the defendant post pre-judgment security, and the plaintiff’s appeal of that decision, as well as the court’s subsequent decision dismissing the case for lack of standing, as the court found the assignee plaintiff had not been assigned the right to arbitrate.
The plaintiff thereafter filed an amended complaint, ostensibly to cure the jurisdictional defect regarding assignment of the right to arbitrate. However, the court again sided with the defendant reinsurer, finding that the amendment did not cure the defect, that the plaintiff has no right to compel arbitration, and that the plaintiff’s claims should be dismissed for failure to state a claim. Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No 12 C 6357 (USDC N.D. Ill. June 11, 2013).
This post written by John Pitblado.
