Legion Liquidator Seeks Vacatur or Modification of Reinsurance Arbitration Award

CHICAGO — The liquidator of Legion Indemnity Co. has moved to vacate or modify an arbitration award, arguing that the panel exceeded its powers and manifestly disregarded the law by awarding $422,680 in attorneys’ fees to a reinsurer.

In a May 3 motion filed before Judge Manish Shah of the U.S. District Court for the Northern District of Illinois, the liquidator argues that in awarding the fees to Catalina Holdings (Bermuda) Limited, the panel ignored the plain language of the reinsurance treaties at issue.

Alea Group Limited provided reinsurance to Legion Indemnity Co. during the early 2000s. Certain of the …