Founders Moves to Dismiss Lydon Confirmation Proceedings

BOSTON - Founders Insurance Company Ltd. has moved to dismiss a suit seeking confirmation of an arbitration award rendered in favor of its cedent, Lyndon Property Insurance Co., asserting lack of personal jurisdiction. Lydon Property Insurance Co. v. Founders Insurance Company Ltd., No. 1:08-11359 (D. Mass.).

Founders filed the sealed motion on Oct. 7 in the U.S. District Court for the District of Massachusetts.

Founders Insurance Company Ltd. reinsured certain default protection insurance policies issued by Lyndon pursuant to the "Centrix Portfolio Management Program." The reinsurance contract, which was effective on Jan. 1, 2002, allegedly required Founders to place assets …