N.Y. Appeals Court Affirms Denial of Summary Judgment to Cedent on Follow The Settlements Issue

NEW YORK — A New York trial court properly denied New Hampshire Insurance Co. summary judgment on the issue of whether the “follow the settlements” doctrine bars its reinsurer from questioning the cedent’s allocation of its settlement of underlying asbestos claims, a New York appeals court has ruled.

In a March 24 order, the New York Supreme Court, Appellate Division, found the reinsurance certificate contains a “following form” clause which contains no reference to New Hampshire’s voluntary handling of claims. The appellate court further ruled that the trial court erred in awarding New Hampshire summary judgment on the reinsurer’s affirmative …