New York Appellate Court Revives Claims Against J.P. Morgan

NEW YORK - A New York state appellate court has reinstated Assured Guaranty (UK) Ltd.'s claims against an investment firm in a suit involving the investment of reinsurance reserves. Assured Guaranty (UK) Ltd. v. J.P. Morgan Investment Management Inc., No. 603755/08 (N.Y. App. Div., 1st Dept.).

On Nov. 23, the New York Appellate Division, 1st Department, ruled that the claims are not barred by the Martin Act, which it said does not explicitly preempt all common law claims.

Scottish Re (U.S.) Inc. reinsured numerous life insurance policies that were issued in 2004. The reinsured pool consisted of 373,725 policies with …