Cedent Waived Right to Remove Action by Filing Counterclaims Before Notice of Removal, N.Y. Federal Judge Rules

NEW YORK — A New York federal judge has remanded a reinsurance action to state court, ruling that Allianz Insurance Co. waived its right to remove the case by raising counterclaims before filing its notice of removal.

On March 20, Judge Lorna G. Schofield of the U.S. District Court for the Southern District of New York also denied R&Q Reinsurance Co.’s request for attorneys’ fees arising from the removal, ruling that it has failed to show any “unusual circumstances” that warrant such an award.

R&Q entered into two reinsurance contracts with Allianz Insurance Co. under which R&Q agreed to indemnify …