Reinsurance Case Survives Dismissal Motion in Mass. Federal Court

BOSTON — A Massachusetts federal judge has refused to dismiss a lawsuit arising from a reinsurance contract and stock purchase agreement between SPARTA Insurance Co. and Pennsylvania General Insurance Co. (PGIC), ruling that the amended complaint, while “far from clear,” alleges an injury-in-fact.

In an Aug. 9 order, Chief Judge F. Dennis Saylor IV of the U.S. District Court for the District of Massachusetts further ruled that the complaint states a claim and is ripe for adjudication.

In June 2005, PGIC and American Employers Insurance Co. (AEIC) entered into a reinsurance agreement, under which AEIC’s liabilities were transferred and …