N.Y. Appellate Court Reinstates Insurers’ Claims Against Trustee of Reinsurance Assets

NEW YORK — A New York appellate court has reinstated an action filed by two insurers against the trustee of reinsurance assets that lost significant value when they were invested by the alter ego of Platinum Partners LP, Beechwood Re Ltd., ruling that dismissal of their breach of contract claim was premature.

In an April 20 opinion, the New York Appellate Division, 1st Department, also reinstated the reinsurers’ breach of fiduciary claim against defendant Wilmington Trust, National Association, finding the allegations raise a question as to whether it owed fiduciary duties to plaintiffs as beneficiaries of the trusts that were …