Global Re Asks 2nd Cir. for Rehearing in Defense Costs Action, Says Bellefonte Still Good Law

NEW YORK — Global Reinsurance Corporation of America has asked the 2nd Circuit U.S. Court of Appeals to revisit its ruling that its obligation to pay defense costs to its cedent, Century Indemnity Co., is not capped and that Bellefonte Reinsurance v. Aetna is no longer controlling law in the circuit.

Global Re moved for rehearing on Jan. 11, arguing the panel “misapprehended the rationale” of Bellefonte and Unigard Sec. Ins. Co., Inc. v. North River Ins. Co., 4 F.3d 1049, 1065 (2d Cir. 1993), both of which state that a reinsurer is "not liable for expenses beyond the stated …