N.J. Federal Judge Refuses to Strike Equitas References from Counterclaim in Reinsurance Allocation Case

NEWARK, N.J. — A New Jersey federal judge has refused to strike portions of a cedent’s counterclaim referring to Equitas Insurance Ltd. in a dispute over the allocation of settlement proceeds under reinsurance contracts covering policies issued to Mine Safety Appliances Co., ruling they are relevant and not prejudicial.

In a June 23 order, Judge John M. Vazquez of the U.S. District Court for the District of New Jersey explained that the history set forth in the counterclaim “is relevant and may provide a useful background to a jury.”

The plaintiff reinsurers, Certain Underwriters at Lloyd’s, London, Tenecom Limited, …