Federal Court in PA Denies Motion to Enjoin Reinsurance Dispute; Allows Reinsurer’s Offset Argument to Remain

Century Indemnity Co. v. Certain Underwriters at Lloyd’s

(E.D. Pa, January 11, 2010)


The instant action involves a reinsurance dispute where the two parties have filed a number of motions and cross-motion seeking injunctive relief and contempt of court regarding failure to paid monies owed.


The court denied both parties various motions.  First the court held that plaintiff’s cross-motion to enjoin a separate action pending in New York court based on the “first-filed” rule is without merit.  Specifically, the court held that this action is not duplicative of the New York action.  The court also found no evidence for plaintiff’s second rationale for injunction, that the New York action was brought in bad faith for the purpose of delaying this action. 


The court also denied plaintiff’s motion for contempt for failing to paid a judgment.  Specifically, the court held that there has not yet been final judgment and therefore, the defendant is not in contempt of any court order or ruling.  Specifically, the court denied that the motion to quantify the prior arbitration award because it first must decide whether the setoff issue is arbitrable. 


For a copy of the decision click here 


Sarah Fang and Dan Gerber







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