News & Events

On March 4, 2009, the Supreme Court of the State of New York (Justice Fried) dismissed a complaint filed by Global Reinsurance Corporation – U.S. Branch (f/k/a Gerling Global Reinsurance Corporation – U.S. Branch) against Equitas Ltd. and certain of its affiliates. Plaintiff alleged that Equitas violated the Donnelly Act, New York’s antitrust law, by conspiring with certain underwriters in the Lloyd’s of London insurance marketplace to drive down retrocessional claims payments to reinsurers such as Plaintiff below the payments that would prevail in a competitive market. The Firm was engaged following the denial of a motion to dismiss the complaint, and Plaintiff's amendment of the complaint. Although the Supreme Court previously had upheld Plaintiff’s allegations of an antitrust violation, including the market definition allegations, the Firm persuaded the court to consider a second motion to dismiss, and argued that Plaintiff failed to properly allege a relevant antitrust market because the allegations were insufficient to differentiate the alleged market from other similar insurance services available outside of Lloyd's of London.  The Firm also sought to dismiss the amended complaint for failure to allege adequately restraint of trade in the relevant market and for lack of subject matter jurisdiction under the Foreign Trade Antitrust Improvements Act of 1982 and comity principles. The Supreme Court agreed with Equitas’s challenge to Plaintiff’s market definition allegations, and ruled that it need not decide the other issues. The case was dismissed with prejudice and costs.
 

The Simpson Thacher team consists of Kevin Arquit, Mary Kay Vyskocil, Arman Oruc, Summer Craig, Maco Stewart, Christopher Cahill, and former associate James Perez, with valuable assistance from paralegal Rosemarie Artale.