Double Damages Awarded in IRC Re Retrocessional Dispute

BOSTON - A Massachusetts judge has awarded $10.3 million to Trenwick America Reinsurance Corp. and Unum Life Insurance Company of America in a retrocessional contract dispute, ruling that the retrocessionaire "willfully and knowingly" denied any existence of the contract. Trenwick America Reinsurance Corp., et al. v. IRC Inc., No. 07-12160 (D. Mass.).

On Feb. 16, Judge Nancy Gertner of the U.S. District Court for the District of Massachusetts ruled that IRC Inc., IRC Re and their president, Malcolm Swasey, breached the contract in bad faith.

Swasey developed Compcare 2000, a workers' compensation insurance program underwritten by IRC Inc. and Occupational …