Reinsurers Barred From Seeking to Allow Certain Evidence in Allocation Dispute, N.Y. Appellate Division Rules

NEW YORK — A New York appeals court has affirmed denial of a motion to allow evidence on the reasonableness of U.S. Fidelity & Guaranty Co.’s allocation of its asbestos settlement to one policy, ruling that the motion contravenes a previous ruling in this case by the state high court.

In an Oct. 29 order, the New York Appellate Division, 1st Department, explained that in its ruling, the high court limited the issues to “whether USF&G, in allocating the settlement amount, reasonably attributed nothing to the bad faith claims made against it, and whether "certain claims were given unreasonable values …