Reinsurer Says Judge Properly Refused to Dismiss Vehicle Service Contract Case

CHICAGO — PMC Casualty Corp. argues that an Illinois federal judge properly denied Virginia Surety Company Inc.’s motion to dismiss a lawsuit accusing it of failing to remit $20 million allegedly owed under a vehicle service contract reinsurance agreement.

In a Feb. 25 opposition filed before Judge Matthew Kennelly of the U.S. District Court for the Northern District of Illinois, PMC says Virginia Surety does not identify a legitimate basis for reconsideration by establishing either a “manifest error” in the opinion or newly discovered evidence.

“Instead, Virginia Surety retreads old ground with its so-called ‘§ A-11(e)(1) Argument’; ‘§ A-11(e)(2) …