STORY FROM: Reinsurance & Arbitration

Neb. Court Upholds Dismissal of Applied Underwriters Case for Lack of Jurisdiction

OMAHA, Neb. — A Nebraska appeals court has upheld dismissal of an action filed by Applied Underwriters Inc. against a California policyholder, ruling that because the reinsurance participation agreement at issue is inextricably intertwined with the underlying insurance contract, California’s workers’ compensation laws will likely govern the agreement.

In an Oct. 22 opinion, the Nebraska Court of Appeals concluded that California courts are better suited to apply California’s complex workers’ compensation laws.

In 2013, O’Connell Landscape Maintenance Inc., a California company, began participating in Applied Underwriters Inc. (AUI)’s EquityComp workers’ compensation insurance program. The program consisted of workers’ compensation policies ...

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