Tonicstar, National Union Settle $1.8 Million Case

NEW YORK - Tonicstar Ltd. has agreed to settle a dispute with its cedent, National Union Fire Insurance Company of Pittsburgh, over reinsurance coverage for an underlying $1.8 million settlement of a construction defects action. Tonicstar Ltd. v. National Union Fire Insurance Company of Pittsburgh, No. 07-02371 (S.D. N.Y.).

On Oct. 16, U.S. District Judge Laura T. Swain of the U.S. District Court for the Southern District of New York ordered the action discontinued without costs to either party.

In March 2007, Tonicstar Ltd., as capital provider for Lloyd's Syndicate 1861, filed a declaratory judgment action, seeking a ruling that …