Enstar Urges Stay of Insurer's Action Pending Resolution of Related Suit

LOS ANGELES — Enstar Holdings (US) LLC is urging a California federal judge to stay an action accusing it of directing its reinsurer subsidiary to deny California Capital Insurance Co. (CIG)’s reinsurance claims, pending the resolution of another lawsuit filed by CIG against the reinsurer.

In a Jan. 24 reply filed in the U.S. District Court for the Central District of California, Enstar says continuing to litigate the instant case while the other lawsuit remains unresolved “imposes significant burdens” on the court and the parties.

In the instant action (“CIG II”), CIG alleges Enstar’s “modus operandi” is to acquire …