Reinsurance Contract Dispute is Not a 'Core' Proceeding, Judge Rules

WILMINGTON, Del. - A breach of contract/bad faith action brought against two reinsurers by the trustee of an offshore affiliate of PRS Insurance Group Inc. is not a "core" proceeding under the U.S. Bankruptcy Code and therefore should not be referred to bankruptcy court, a federal bankruptcy judge has ruled. Logan v. Westchester Fire Insurance Co., et al., No. 11-50467 (D. Del. Bkcy.).

On March 30, Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware explained that an action filed by a debtor or trustee against the debtor's insurer is a non-core proceeding.

PRS Insurance …