Self-Insured Pool Demands $3.25 Million From Munich Re

LOS ANGELES - A reinsurer is urging a California court to dismiss a suit in which a cedent seeks reimbursement of $4.25 million it paid to settle claims brought against a California city in connection with land development restrictions California Joint Powers Insurance Authority v. Munich Reinsurance America Inc., No. 08-00956 (C.D. Calif.).

In its March 17 motion to dismiss, Munich Reinsurance America Inc. argues that California law prohibits tort recovery in breach of contract actions, therefore the cedent's claim for punitive damages should be thrown out.

In a Feb. 8 suit filed in the U.S. District Court for the …