Continental’s Breach of Contract Claim Proceeds in Sex Abuse Reinsurance Brawl

HONOLULU — A Hawaiian federal judge has refused to dismiss Continental Insurance Co.’s breach of contract counterclaim in a dispute over reinsurance coverage for sexual abuse claims asserted against the Catholic church, ruling the existence of a contract has been adequately pled.

On Oct. 31, Judge J. Michael Seabright of the U.S. District Court for the District of Hawaii rejected First Insurance Company of Hawaii (FICOH)’s argument Continental failed to allege the existence of a reinsurance agreement between the parties.

“Essentially, the Counterclaim alleges or implies that the actual reinsurance agreement is missing or lost. And many federal courts have …