Lexington Asserts Affirmative Defenses to TransRe’s $1.4 Million Counterclaim in Reinsurance Dispute

Follow The Settlements

BOSTON — In its response to a $1.4 million counterclaim asserted by Transamerica Reinsurance Co. in a reinsurance dispute involving an underlying settlement of asbestos and environmental claims, Lexington Insurance Co. contends TransRe has failed to state a claim.

In its March 11 response filed in the U.S. District Court for the District of Massachusetts, Lexington also asserts affirmative defenses of unclean hands, laches, res judicata, waiver and/or estoppel.

Lexington issued Dynalectron two excess policies in effect from July 1, 1981 to July 1, 1982. The policies were allegedly reinsured under two facultative reinsurance certificates issued by …