STORY FROM: Reinsurance & Arbitration

Pa. Federal Judge Tosses Claims Against Reinsurer in Coverage Case

PITTSBURGH - A Pennsylvania federal judge has dismissed breach of contract and bad faith claims asserted against a reinsurer in an insurance coverage action, ruling that the defendant insurer is not in contractual privity with the reinsurer, and the policyholder is not a third-party beneficiary under the reinsurance agreement.

On Feb. 8, Judge Mark R. Hornak of the U.S. District Court for the Western District of Pennsylvania also dismissed the policyholder's conspiracy claim against the insurer and reinsurer, finding the complaint does not contain allegations of malice.

The action arose from an insurance coverage dispute involving a June 30, 2014, ...

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