Federal Judge Allows 3rd Party Action Against Mosaic to Proceed

CHICAGO - An Illinois federal judge has refused Mosaic Global Holdings Inc.'s request to dismiss a third-party action arising from a 1980 reinsurance agreement, ruling that Mosaic can be held liable for costs should the third-party plaintiff prevail. Carnforth Ltd. v. Mosaic Global Holdings Inc., No. 08-3618 (N.D. Ill.).

Judge Charles R. Norgle of the U.S. District Court for the Northern District of Illinois ruled April 22 that if Carnforth Ltd. prevails, Mosaic would be required to pay not only the amount of any judgment entered against it, but also sums Carnforth expends in defending a related reinsurance action filed …