Calif. Federal Judge Stays Action Accusing Enstar of Interference with Reinsurance Contract

LOS ANGELES — A California federal judge has granted Enstar Holdings (US) LLC’s motion to stay an accusing it of directing its subsidiary Maiden Reinsurance North America Inc. to deny California Capital Insurance Co. (CIG)’s reinsurance claims, pending the resolution of another lawsuit filed by CIG against Maiden Re.

On April 15, Judge Otis D. Wright II of the U.S. District Court for the Central District of California agreed with Enstar that continuing to litigate the instant case while the other lawsuit (CIG I) remains unresolved “imposes significant burdens” upon the court and the parties.

“Under California law and on …