Ala. Federal Judge Revives Reinsurance Coverage Battle, Citing Failed Mediation

MONTGOMERY, Ala. — An Alabama federal judge has reinstated an action in which a municipal insurer is demanding reinsurance coverage for defense costs it incurred in a lawsuit filed against one of its member towns, explaining that the parties’ attempt at mediation has failed.

In a March 19 order, Judge Myron H. Thompson of the U.S. District Court for the Middle District of Alabama said the court will hear oral argument on defendant Reinsurance America, Inc.’s motion for summary judgment only as it relates to count three of Alabama Municipal Insurance Corp.’s amended complaint (the “Fairhope” claim for breach of …