STORY FROM: Reinsurance & Arbitration

Nicaragua, Insurer, Seek Dismissal of Lawsuit Seeking Coverage for 2003 Factory Fire

MIAMI — The Republic of Nicaragua and a Nicaraguan insurer have moved to dismiss a lawsuit in which the owner of a plastics factory is seeking coverage for a 2003 fire, ruling that the action does not belong in the United States.

In a motion filed on May 7 before Judge Marcia Cooke in the U.S. District Court for the Southern District of Florida, the movants further contend that they are shielded from liability under the Foreign Sovereign Immunities Act.

Farouk Morales is the owner of a plastic manufacturing plant in Nicaragua, Plasticos de America Central S.A. The plant was ...

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