Granite State Cannot Recover on $4.4 Million Reinsurance Claim Due to Late Notice, N.Y. Federal Judge Rules

NEW YORK — Granite State Insurance Co. failed to provide prompt notice of a $334 million settlement of asbestos claims to its reinsurer, Clearwater Insurance Co., and therefore cannot recover on its $4.5 million reinsurance claim under either Illinois or New York law, a New York federal judge has ruled.

On March 31, Judge Richard K. Eaton of the U.S. District Court for the Southern District of New York found the late notice deprived Clearwater of its contractual right to participate in the settlement negotiations and constituted a breach of Granite State’s duty of good faith and fair dealing.

Granite …