STORY FROM: Reinsurance & Arbitration

Non-Resident Defendants Are Subject to Personal Jurisdiction in Georgia, Canal Insurance Maintains

ATLANTA — Four out-of-state defendants are subject to personal jurisdiction in Georgia because they received fraudulent transfers from Golden Isles Reinsurance Company Ltd., says Canal Insurance Co. in a lawsuit accusing the reinsurer of draining its assets to avoid paying reinsurance claims.

In a Jan. 3 reply brief filed in the U.S. District Court for the Northern District of Georgia, Canal asserts that the non-resident defendants are subject to the Georgia court’s jurisdiction because they “purposefully engaged in a dubious transaction in Georgia and accepted hundreds of thousands of dollars from a Georgia company without explanation.”

In 2004, Canal ...

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