Utica Moves for Summary Judgment, Says Clearwater Obligated Under Follow-The-Settlements Clause

ALBANY, N.Y. — The doctrines of “follow the fortunes” and “follow the settlements” requires Clearwater Insurance Co. to pay a reinsurance billing for an underlying asbestos settlement, Utica Mutual Insurance Co. contended in its motion for summary judgment.

In a motion filed in the U.S. District Court for the Northern District of New York, Utica maintained that Clearwater is collaterally estopped from arguing otherwise by a previous Massachusetts state court ruling interpreting similar language as imposing a follow-the-fortunes obligation.

Clearwater opposed the motion on June 1, arguing that because Utica did not obtain the reinsurer’s authorization before settling the …