Pension Plan Objects to Dismissal Recommendation of $934 Million Case Against Captive

WASHINGTON, D.C. — The trustees of a pension plan have objected to a federal magistrate judge’s recommendation that their lawsuit demanding the return of $934 million in withdrawal liability payments from offshore reinsurer Cardem Insurance Company Ltd. be dismissed for lack of jurisdiction.

In a Jan. 21 filing in the U.S. District Court for the District of Columbia, the trustees argue that “Cardem’s continuous and systematic contacts with the United States” support the exercise of jurisdiction.

Walter Energy Inc. and its subsidiary, Jim Walter Resources Inc., operated a coal mining business. Cardem is a captive insurer owned by Walter Energy. …