Everest May Not Intervene in Midland Liquidation, Court Affirms

NEW YORK - Everest Reinsurance Co. may not proceed with a declaratory judgment action against the liquidator of Midland Insurance Co. because it would contravene the public interest in the single management of a liquidation, a New York appellate court has affirmed. In re Liquidation of Midland Insurance Co., Nos. 4195, 4195A (N.Y. App. Div., 1st Dept.).

On Aug. 25, the New York Appellate Division, First Department, agreed with the liquidation court that Everest is barred by state insurance law from interposing defenses in the liquidator's settlement negotiations and claims allowance processes.

In 1986, the New York County Supreme Court …