Simpson Thacher Obtains Simultaneous Appellate Victories
12.22.16
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Litigation Partners Mary Beth Forshaw and Andy Frankel received favorable unanimous rulings in two insurance-related cases on appeal to New York’s Appellate Division, First Department. In United States Fidelity and Guaranty Co. v. American Re-Insurance Co., a long-running reinsurance dispute arising from a nearly billion dollar insurance settlement, the court considered a reinsurer’s appeal of an order denying its motion to transfer venue. The venue motion was filed shortly before trial, and asserted that New York was an improper venue because one of USF&G’s trial witnesses is now a sitting Justice of New York’s Supreme Court. The Appellate Division unanimously agreed that transfer was inappropriate. Trial has been scheduled for May 2017. Mary Beth, who argued the appeal, was assisted in the appeal by Litigation Partners Lynn Neuner, Chet Kronenberg and George Wang and Litigation Associates Dan Stujenske and Tyler Bernstein, among others who worked on the case.
On the same day, Andy received a unanimous ruling affirming a favorable decision on behalf of the New York Superintendent of Financial Services as Liquidator for the Estate of Midland Insurance Company, in connection with an appeal by PPG Industries against the Midland estate. PPG sought coverage of approximately $110 million from Midland arising from a settlement it entered into in connection with the bankruptcy proceedings of its affiliate, Pittsburgh Corning. New York law provides that the Liquidator must disallow any claim that is considered contingent by a bar date set in the liquidation proceedings. PPG argued that the claim should have been allowed because it was fixed and certain as of the bar date. The Appellate Division agreed with the Liquidator, however, that because the bankruptcy plan had not been confirmed at the time and other conditions to coverage had not been satisfied, the claim was properly disallowed. Andy was assisted in the appeal by Litigation Associate Rachel Sparks Bradley.