Munich Re Urges Stay of Discovery Pending Motion to Dismiss Bad Faith Claim

MONTGOMERY, Ala. — Munich Reinsurance America Inc. is urging an Alabama federal judge to stay discovery in a $1.9 million reinsurance action filed against it by a non-profit public insurer, pending the court’s ruling on its motion to dismiss the bad faith claims.

In an Aug. 5 brief, Munich Re argues that the 11th Circuit U.S. Court of Appeals has recently reaffirmed that “facial challenges to the legal sufficiency of a claim or defense, such as a motion to dismiss based on failure to state a claim for relief, should be resolved before discovery begins.”

Alabama Municipal Insurance Corp. sued …