Claims Against Insolvent Reinsurer Stayed in Mass. Coverage Action

BOSTON — A Massachusetts federal judge has stayed counterclaims asserted by Lamorak Insurance Co. against an English reinsurer in a reinsurance coverage action in light of the reinsurer’s recent bankruptcy order.

On Feb. 28, Judge Nathaniel Gorton of the U.S. District Court for the District of Massachusetts granted the parties’ joint motion to stay all claims against Stronghold Insurance Company Ltd.

According to the motion, Stronghold has been subject to insolvency-related proceedings in England and was placed into formal administration on June 27. The U.S. Bankruptcy Court for the Southern District of New York subsequently directed a stay of …