Neb. Federal Judge Dismisses NICO’s Action Seeking Injunctive Relief in Reinsurance Dispute

OMAHA, Neb. — A Nebraska federal judge has dismissed without prejudice National Indemnity Co.’s action seeking to enjoin Transatlantic Reinsurance Co. and Fair American Insurance and Reinsurance Co. from compelling it to arbitrate a reinsurance contract dispute, ruling that the claims would best be resolved in Illinois or New York.

In an April 1 order, Judge John M. Gerrard of the U.S. District Court for the District of Nebraska explained that NICO was given the option of dismissal or severance and transfer of its claims and it chose dismissal.

The Continental Claim

In a 1985 agreement Transatlantic agreed to reinsure …