STORY FROM: Reinsurance & Arbitration

Daubert Order Issued in Reinsurance Case Involving Mine Subsidence Damage

SPRINGFIELD, Ill. — In a dispute over reinsurance coverage for mine subsidence damage claims, an Illinois federal judge has allowed certain expert testimony on the issue of whether the railroad’s subsidiary and the coal company that dug the mines were one company.

In a Jan. 16, Magistrate Judge Tom Schanzle-Haskins of the U.S. District Court for the Central District of Illinois said the experts may opine that the two companies engaged in standard business practices of a corporate parent and a subsidiary but may not opine on the question of whether the facts establish the reinsurer’s alter ego claim.

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