2nd Cir. Denies Global Re’s Motion for Rehearing in Defense Costs Battle

NEW YORK — The 2nd Circuit U.S. Court of Appeals has refused to revisit its ruling that Global Reinsurance Corporation of America’s 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.

On Feb. 11, the appellate court denied Global’s petition for panel rehearing or rehearing en banc, in which the reinsurer argued that the court “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 …