S.C. Federal Judge Stays Trust Agreement Dispute Pursuant to Parties’ Settlement Documents

COLUMBIA, S.C. – A South Carolina federal judge has stayed Madison Insurance Co.’s lawsuit accusing Greenlight Reinsurance Co. of wrongfully withdrawing funds from a trust agreement managed by Regions Bank, explaining that the parties have executed settlement documents.

In a Feb. 25 order, Chief Judge Terry L. Wooten of the U.S. District Court for the District of South Carolina granted the parties’ joint motion to stay and directed Greenlight and co-defendant Regions not to withdraw or allow withdrawal of any funds from the trust agreement during the 90-day stay.

Greenlight Re issued two one-year quota share reinsurance agreements to State …