STORY FROM: Reinsurance & Arbitration
$5M Securities Coverage Battle Remanded to State Court
May 23, 2008
SAN JUAN, P.R. - A $5 million action involving reinsurance coverage for the 2007 settlement of securities fraud class actions against Doral Financial Corp. has been remanded to state court by a Puerto Rico federal judge. Universal Insurance Co. v. Hartford Fire Insurance Co., No. 3:08-cv-01316-JP (D. P.R.).
In a May 15 order, Judge Jaime Pieras Jr. of the District of Puerto Rico ruled that removal to federal court was untimely because diversity is incomplete. The suit was filed by Universal Insurance Co. against Doral and reinsurers Hartford Fire Insurance Co. and Liberty Mutual Insurance Co.
In 2003, Universal issued ...