2nd Circuit Upholds Remand of Midland Contract Dispute

NEW YORK - A federal appeals court has upheld the remand of a dispute between the liquidator of Midland Insurance Co. and a Serbian reinsurance company on the basis that the service-of-suit clause in the reinsurance agreements at issue requires that the action be heard in New York state court. Dinallo v. Dunav Insurance Co., No. 09-5235 (2nd Cir.).

On Dec. 1, the 2nd Circuit U.S. Court of Appeals affirmed that the service-of-suit provision operates as a waiver of the reinsurer's right to remove the action to federal court.

Between November 1978 and October 1980, Midland and Dunav allegedly …