Canal Seeks Jurisdictional Discovery as to Two Out-of-State Defendants in Golden Isles Action

ATLANTA — Canal Insurance Co. has moved for leave to conduct limited discovery as to whether a Georgia federal court has jurisdiction over two out-of-state individual defendants who allegedly received fraudulent transfers from Golden Isles Reinsurance Company Ltd.

In an Oct. 3 motion, Canal says the discovery will involve, among other things, the existence of any agreement the out-of-state defendants and Golden Isles pursuant to which the fraudulent transfers were made and whether those defendants negotiated or performed such an agreement in Georgia.

In 2004, Canal entered into two reinsurance agreements with Golden Isles, under which Golden Isles reinsured Canal’s …