STORY FROM: Reinsurance & Arbitration
Railroad Co. Not Liable to Homeowners for Mine Damages, Ill. Federal Judge Rules
August 29, 2019
SPRINGFIELD, Ill. — An Illinois federal magistrate judge has awarded a railroad company summary judgment in a reinsurance dispute over payments for mine subsidence damages, ruling that the alter-ego exception does not apply to the general rule of no liability for the company’s stockholders.
On Aug. 26, Judge Tom Schanzle-Hankins of the U.S. District Court for the Central District of Illinois further ruled that a de facto merger occurred, therefore the stockholders are not liable for the payments under the de facto merger exception.
Illinois Mine Subsidence Insurance Fund reinsures insurers that provide mine subsidence insurance to Illinois landowners. In ...
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