Collateral Estoppel Bars Reinsurance Action Against Swiss Re, Mich. Judge Rules

DETROIT – A Michigan federal judge has awarded summary judgment to Swiss Reinsurance America Corp. in a reinsurance dispute, ruling that the question of whether it is liable for defense costs incurred by its cedent in defending underlying asbestos claims was already decided in a previous arbitration.

In a March 28 order, Judge Mark A. Goldsmith of the U.S. District Court for the Eastern District of Michigan agreed that the issue was litigated in an arbitration between Amerisure and a different reinsurer, Allstate Insurance Co. Therefore, Amerisure is collaterally estopped from relitigating the issue, the judge ruled.

Amerisure issued Armstrong …