STORY FROM: Reinsurance & Arbitration

Insurance Fund Appealing Award of Summary Judgment to Railroad in Mine Damages Case

SPRINGFIELD, Ill. — An Illinois insurance fund is appealing a federal trial court’s award of summary judgment to a railroad company in a reinsurance dispute over payments for mine subsidence damages.

The Illinois Mine Subsidence Insurance Fund filed its notice of appeal on Oct. 9 in the 7th Circuit U.S. Court of Appeals. The Fund will challenge the U.S. District Court for the Central District of Illinois’ ruling that the alter-ego exception does not apply to the general rule of no liability for the railroad company’s stockholders.

In that ruling, Magistrate Judge Tom Schanzle-Hankins also held that a de facto ...

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