Great American is Not Liable for Lost Interest Income, Court Affirms

NEW YORK - A New York state appellate court has upheld a trial court order that requires Founders Insurance Co. to post an undertaking in the amount of $500,000 pending its arbitration of a reinsurance contract dispute with Everest National Insurance Co. Founders Insurance Company Ltd. v. Everest National Insurance Co., et al., Nos. 2681, 2682 and 2683 (N.Y. App. Div., 1st Dept.).

The New York Appellate Division, 1st Department, further ruled that non-party Great American Insurance Co. should not be held liable for the lost interest income incurred by Everest as a result of a later-withdrawn trial court decision …