Utica Mutual Says Clearwater’s $1 Million Counterclaim is Barred by Follow The Fortunes

SYRACUSE, N.Y. — Utica Mutual Insurance Co. asserts that a $1 million counterclaim brought against it by Clearwater Insurance Co. in a reinsurance dispute involving underlying asbestos claims is barred by the doctrines of follow the fortunes doctrine and waiver.

In its Dec. 26 answer filed in the U.S. District Court for the Northern District of New York, Utica denies the allegation that Clearwater’s payments to it under the reinsurance contracts at issue were improper and did not fall within the scope of reinsurance coverage.

Between 1978 and 1982, Utica issued four consecutive umbrella liability policies to Goulds Pumps that …