Judge Refuses to Dismiss Breach of Contract, Fraud Claims Against Southwest Reinsure

MINNEAPOLIS - A Minnesota federal judge has allowed breach of contract, breach of fiduciary duty and fraud claims to proceed against Southwest Reinsure Inc. (SRI) and its offshore affiliates in a dispute involving more than $1 million in trust account funds. Security Life Insurance Company of America v. Southwest Reinsure Inc., et al., No. 11-1358 (D. Minn.).

On Dec. 20, Chief Judge Michael J. Davis of the U.S. District Court for the District of Minnesota ruled that Security Life Insurance Company of America pleaded the claims with the requisite particularity.

SRI specializes in establishing offshore reinsurance companies, known "producer-owned reinsurance …