Mariah Re Liquidators Urge N.Y. Court to Reject Defendants’ Dismissal Motions in Storm Loss Dispute

NEW YORK — In response to defendants’ motions to dismiss, the liquidators of Mariah Re contend they have sufficiently pleaded that Mariah relied on an inaccurate, untimely catastrophe bulletin generated by Property Claim Service and AIR Worldwide Corp., which caused the reinsurer to pay American Family Insurance Co. millions of dollars for severe storm losses.

In its Dec. 27 opposition filed in the U.S. District Court for the Southern District of New York, the liquidators argued that defendants breached the covenant of good faith and fair dealing and their respective contracts with Mariah.

In November 2010, Mariah entered into a …