Pennsylvania Asbestos Reinsurance Dispute Stayed Under First Filed Rule

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PHILADELPHIA, March 3 — A federal judge has granted a motion filed by R&Q Reinsurance Company to stay a reinsurance coverage suit filed by St. Paul Insurance arising out of more than $10 million in asbestos – related payments made by St. Paul on behalf of an insured.  St. Paul sought reimbursement  from R&Q pursuant to a reinsurance treaty with INA Reinsurance, to which R&Q has become a successor in interest.

The case  has now been stayed pending the outcome of a previous case filed by R&Q in United States District Court in Illinois in 2015. That case is captioned R&Q Reinsurance Company, f/k/a Ace American Reinsurance Company, f/k/a Cigna Reinsurance Company, f/k/a INA Reinsurance Company v. St. Paul Fire & Marine Insurance Company (No. 15-cv-07784, U.S.  N.D. Ill.).

U.S. District Judge Judge Joel H. Slomsky originally denied the motion to stay in the Pennsylvania action  on Dec. 18, but vacated that ruling as part of a decision he rendered on a motion to dismiss subsequently filed by R&Q in Pennsylvania .  R&Q sought dismissal or stay in Pennsylvania  pursuant to the first filed rule, citing to the Illinois litigation filed in 2015.

St. Paul had already filed and fully briefed a motion to transfer venue in the Illinois proceeding.  Judge Slomsky stayed the Pa. proceeding pending rulingson jurisdictional motions in the Illinois action.

St. Paul Fire and Marine Insurance Company v. R&Q Reinsurance Company, No. 15-cv-5528, E.D. Pa. March 3, 2016.

 

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Author: CJ Haddick

C.J. Haddick is a Director with the law firm of Dickie, McCamey, & Chilcote, PC, based in Pittsburgh, Pa. He has advised and represented insurers in insurance coverage and bad faith litigation for more than a quarter of a century, and written and spoken throughout the United States on insurance coverage and bad faith prevention and litigation. He is Managing Director of the firm's Harrisburg, Pa. office. Reach him at chaddick@dmclaw.com or 717-731-4800.

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