No Privity Between Reinsurer and Policyholders, Idaho Federal Judge Rules

BOISE, Idaho — An Idaho federal judge has granted reinsurer Hartford Steam Boiler Inspection & Insurance Co. summary judgment on an interference with contract claim brought by its cedent’s policyholder, ruling that because coverage under the reinsured policy was excluded, no contract existed.

On March 15, Chief Judge B. Lynn Winmill of the U.S. District Court for the District of Idaho also granted HSB summary judgment on the policyholders’ breach of contract, bad faith and intentional misrepresentation claims, finding there was no privity between the reinsurer and the policyholders.

In May 2009, Backups Plus Computer Services’s hard drives failed. The …