Neb. High Court Overturns Default Judgment Against Insured in Applied Underwriters Case

OMAHA, Neb. — The Nebraska Supreme Court has overturned a default judgment issued against a policyholder in a workers’ compensation coverage dispute, ruling that the insured asserted a viable defense against claims asserted by Applied Underwriters Captive Risk Assurance Company Inc.

In a June 22 opinion, the court held that further judicial inquiry is needed into whether the reinsurance participation agreement at issue was void and unenforceable under California law. As such, the court remanded the action for further proceedings.

Oceanside Laundry LLC, a California company doing business as Campus Laundry, entered a reinsurance participation agreement with AUCRA as part …