Mass. Appellate Court Reverses Dismissal of National Indemnity’s Claims in Reinsurance Commutation Dispute

BOSTON — A Massachusetts appellate court has reversed dismissal of claims asserted against Transatlantic Insurance Co. and Alleghany Corp. by National Indemnity Co. (NICO) in a dispute over the commutation of asbestos-related reinsurance obligations, finding it is not clear at this stage whether the claims are governed by Massachusetts law.

However, in the April 29 opinion, the Massachusetts Appeals Court upheld dismissal of Resolute Management Inc.’s claims, explaining that Resolute was not a party to the contracts at issue in the case.

In 2001, NICO entered into an administrative services agreement (ASA I) with two major insurers, pursuant to which …