Calif. Federal Judge Dismisses Reinsurance Action, Citing Settlement

LOS ANGELES — A California federal judge has dismissed with prejudice a reinsurance action involving underlying pollution losses, explaining that the parties have reached a settlement.

Judge Stanley Blumenfeld of the U.S. District Court for the Central District of California entered the order on Jan. 15 in response to a joint motion to dismiss filed by Continental Insurance Co. and TIG Insurance Co.

CIC accused TIG of breaching a facultative reinsurance contract by refusing to pay toward the settlement of environmental contamination claims filed against CIC’s policyholder.

In a May 15 complaint, CIC noted the reinsurance certificate provides that …