Judge Dismisses Reinsurer's Counterclaims of Fraud, Unjust Enrichment

CHICAGO - An Illinois federal judge has dismissed a counterclaim for fraud brought by a reinsurer seeking repayment of letter of credit funds, ruling that the allegations failed to state a claim for tortious interference with business relations. Arrowood Indemnity Co. v. Assurecare Corp., No. 11-5206 (N.D. Ill.).

On Dec. 15, Judge William J. Hibbler of the U.S. District Court for the Northern District of Illinois also dismissed Assurecare Corp.'s counterclaim for unjust enrichment against cedent Arrowood Indemnity Co., ruling that it relates to allegedly improper conduct relating to the reinsurance contract, rather than the LOC.

Arrowood provided liability insurance …