Experience in Handling Reinsurance Disputes
October 2013
Bob Allen is one of only a handful of Texas lawyers with significant experience in representing reinsurers in reinsurance disputes. This representation includes disputes with cedants, issues
arising from insolvencies, retrocessionaire agreements, and problems with managing general agents. While Bob and his group regularly counsel reinsurers in matters that are amicably
resolved, the following details some of his reinsurance litigation experience:
Reinsurance Litigation:
- Micah Guy v. Powermate Holding Corp., 5:11-cv-00699 on file in the United States District Court for the Western District of OklahomaExperience: Lead counsel for Princeton Excess & Surplus Lines Co. (a Munich Re America company). This case involved a garnishment action against Princeton Excess and others
in connection with an unsatisfied Judgment in favor of Plaintiff Guy against Powermate Holding Corp. As it relates to Princeton Excess & Surplus Lines, the garnishment
action was dropped before Princeton filed its answer or otherwise appearing. - City of Pasadena, Texas v. Texas Municipal League Intergovernmental Risk Pool, et. al., Cause No. 2010-55057 on file in the 55th Judicial District Court of Harris County, Texas.Experience: Lead counsel for Montpelier Re. This case involved allegations that the Texas Municipal Leagues Third Party Administrators and Reinsurers engaged in unfair claim
settlement practices in connection with Hurricane Ike claims. Montpelier Re was voluntarily dismissed from the suit after filing Special Exceptions challenging the legal basis of
the Plaintiffs cause of action. - Hollinger v. Home State County Mutual Ins. Co., Civil Action No: 5:09-CV-00118, on file in the United States District Court for the Eastern District of Texas, Texarkana Division.Experience: Co-lead counsel (with Meckler Partner Meloney Cargil Perry) for Mendota Insurance Company in the capacity of a reinsurer of Consumer County Mutual Insurance Co.
This class action involved allegations that Mendota allowed its cedant to collect policy fees on substandard automobile insurance policies that allegedly violated anti-discrimination provisions
of Tex. Ins. Code art. 544.052. Plaintiff filed this case in federal court pursuant to the Class Action Fairness Act of 2005 (CAFA). The trial court dismissed the case for lack of
jurisdiction and the Fifth Circuit affirmed. Hollinger v. Home State Mutual Ins. Co., 654 F.3d 564 (5th Cir. 2011). - Michael Vaughan, Individually and d/b/a Auto Exam, et. al. v. Lockton Cos. Of Dallas, Inc., et. al., Cause No. 08-03518 on file in the 298th Judicial District Court of Dallas County, Texas.Experience: Lead counsel for Hannover Re. This case involved an alleged conspiracy by several parties to sell undercapitalized and uninsured extended vehicle service contracts. It
alleged that referring to finite reinsurance as reinsurance is an actionable misrepresentation. Also, several extra contractual theories were also alleged. - Clark & Company v. St. Paul Fire & Marine Co., Cause No. 03-03587-B on file in the 44th Judicial District Court of Dallas, County, Texas.Experience: Lead counsel for St. Paul Re. This case involved an action against a fronting ceding company, an intermediary, and a managing general agency to recover losses sustained
due to the failure to disclose negative audits on a book of sub-standard auto business that led St. Paul Re to sustain losses and extend its reinsurance on the book of business.
Settlements were achieved with the cedant and the intermediary and the case against the managing general agency was the subject of a three week jury trial in which the jury found
in favor of St. Paul Re. The Texas Lawyer ranked this result as the No. 2 Insurance Jury Verdict of 2011. - Gillman Interests, Ltd., et. al. v. Brokerage Professionals, Inc., et. al., C.A. 4:07CV01495 at one time on fie in the United States District Court for the Southern District of Texas Houston Division.Experience: Lead counsel for Hannover Re. This case involved the impact of an insolvent cedant on a vehicle warranty program. After receiving favorable rulings from an Illinois
Bankruptcy Court, this case against Hannover Re was voluntarily dismissed by the Plaintiffs. - Shrewsbury Underwriting Capital (Bermuda), Ltd., et. al. v. Transfin Ins. Ltd., et. al., Case No 2:05-CV-00199-jjn, on file in the United States District Court for the District of Vermont.Experience: Lead counsel for American Re. This was a declaratory judgment action seeking to determine the reinsurance cover, if any, applicable to potential losses to a ceding
company, which is a captive insurer for a major railroad. - All American General Agency, Inc. v. U.S. Fidelity Insurance Services, Inc., Cause No. CC-04-14136-A on file in the County Court at Law No. 1 of Dallas County, Texas.Experience: Lead counsel for a reinsurer group including American Re, Everest Re, Folksamerica Re, QBE Re, Partner Re, Odyssey Re, Swiss Re and Trenwick Re. This case involved
an attempt by a management company to hold reinsurers responsible through a premium finance authorization for payment of its processing fees in connection with a book of Texas
sub-standard auto insurance. - USA Managed Care Organization, Inc. v. American Re-Insurance Co., Civil Action No. A05CA164 SS at one time on file in the United States District Court for the Western District of Texas, Austin Division.Experience: Lead counsel for American Re. In this case, USA Managed Care Organization alleged that American Re breached various provisions of a Marketing Agreement it entered
into with USA Managed Care. After an evidentiary Preliminary Injunction Hearing, Austin federal judge Sam Sparks denied USA Managed Cares Motion for Preliminary Injunction and
USA Managed Care voluntarily dismissed this case. - MS Casualty Ins. Co., et. al. v. Mississippi Ins. Guaranty Assc. v. General Re-Insurance Corp. and American Re-Insurance Co., Civil Action No. 2004-337 on file in the Chancery Court of Madison County, Mississippi.Experience: Lead counsel for American Re. This case involves an attempt by the Mississippi Insurance Guaranty Association to recover from reinsurers of Legion outside of the Legion
insolvency proceeding in Pennsylvania. At issue are losses arising out of a book of Mississippi based workers compensation insurance. - Kristi Freeman and Wade Freeman Individually and as Representatives of a Class of Persons Similarly Situated v. Empire Fire and Marine Insurance Co.; American Select Insurance Management Corp.; Insurers Administrative Corp.; Consumer Benefits of America; and American Reinsurance Co., Cause No. 6:03-CV-414 on file in the Western District of Texas, Waco Division.Experience: Lead counsel for American Re. This class action involved plaintiffs allegations that a group health program underwritten by Empire Fire and reinsured by American Re should
be transformed into 15,000 individual policies. - National Am. Ins. Co. v. Am Re-Insurance Co., 358 F.3d 736 (10th Cir. 2004).Experience: Lead counsel for American Re. This case involved an attempt by NAICO to hold American Re liable under treaties issued to the Association of County Commissioners of
Oklahoma, Self Insurance Group (ACCO-SIG), for several millions of dollars of claims that NAICO paid. American Re obtained a summary judgment from an Oklahoma City federal court,
which was affirmed on appeal by the federal 10th Circuit Court of Appeals. - Waste Management, Inc. v. QBE Reinsurance Corp. and American Reinsurance Co., Cause No. G-01-354 at one time on file in the Southern District of Texas, Galveston Division.Experience: Lead counsel for American Re. In this case, Waste Management sought to force the reinsurers of its principal insurer, Reliance, to assume the same reinsurance terms for
its new insurer, ACE. The Reinsurers refused. The case was prosecuted on a variety of theories including breach of duty of good faith and fair dealing, breach of duty of utmost good
faith and Texas Insurance Code violations. The case was dismissed shortly after Reliance went into liquidation.The case was profiled in the September16, 2001 issue of MEALEY’S LITIGATION REPORTS REINSURANCE. - First Integrated Health, Inc., et. al. v. Swiss Re Life and Health America, Inc., et. al., Civil Action No. 3-98-CV-0097-H at one time on file in the United States District Court for the Northern District of Texas, Dallas Division.Experience: Lead counsel for Swiss Re Life and Health. This matter involved a dispute over a retrocessionaire agreement.