Liquidator Must Conduct Choice-Of-Law Analysis for Each Claim, Court Rules

NEW YORK - An individual choice-of-law analysis must be conducted for each of the denied claims in the Midland Insurance Co. liquidation, New York's highest court has ruled, explaining that a blanket application of New York law to the claims "would frustrate the statutory mandate requiring the submission and allowance of claims by the liquidator 'justly owed' to the major policyholders." In re Liquidation of Midland Insurance Co., No. 38 (N.Y. Ct. App.).

In an April 5 opinion, the New York Court of Appeals explained that the claims derive from policies issued by Midland prior to its insolvency and if …