U.K. Court of Appeal Prohibits “Spiking” in Mesothelioma Cases in Win for Reinsurers

[Editor's note: Brendan Gooley of Carlton Fields is a litigator who focuses on employment discrimination, education, and insurance matters. He joined the firm after clerking for the U.S. Court of Appeals for the Second Circuit and the Connecticut Supreme Court.]

In a closely watched case, the Court of Appeal of England and Wales has given reinsurers a win with respect to reinsurance claims related to mesothelioma and other asbestos-related diseases. The decision bars insurers from engaging in “spiking.” Under that practice, insurers were making a single reinsurance claim for the entire loss to an injured employee under a single …