Reinsurer Moves to Dismiss Bad Faith Claim in Breach of Contract Action

LOS ANGELES — A reinsurer has moved to dismiss a bad faith claim in a reinsurance breach of contract action, arguing that the remedy is not available in disputes arising from a reinsurance treaty.

In a March 2 motion filed in the U.S. District Court for the Central District of California, Maiden Reinsurance North America Inc. further argued that plaintiffs’ bad faith claim is duplicative of their breach of contract claim and should therefore be stricken.

According to the complaint, Maiden Re (now known as Fletcher Reinsurance Co.) reinsured California Capital Insurance Co. (CIG) and its underwriting companies, Eagle West …