News & Events

On March 27, 2012, the New York Court of Appeals reinstated the dismissal of a lawsuit brought 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.  The action was brought under the Donnelly Act, New York's antitrust law, and alleged that Equitas conspired with certain underwriters in the Lloyd’s of London insurance marketplace to drive down retrocessional claims payments to reinsurers such as Global below the payments that would prevail in a competitive market.  The Court of Appeals held that Global failed to allege that Equitas and underwriters in the Lloyd’s of London insurance marketplace had market power in the worldwide market, as necessary to make a Donnelly Act claim.  In addition, the Court of Appeals found that the alleged injury was not redressable under the Donnelly Act because there was an insufficiently close nexus between the alleged conspiracy and injury to competition in New York.  The decision reversed the New York Appellate Division, First Department, and reinstated the judgment of the Supreme Court of the State of New York (Justice Fried) that dismissed the action with prejudice and costs.

The Simpson Thacher attorneys who worked on this matter include Partners Kevin Arquit, Arman Oruc, and Mary Kay Vyskocil and associates Chris Cahill, Summer Craig, Ellen Frye, and Conor Reidy.