Motions for Judgment on the Pleadings Denied in Mass. Federal Reinsurance Action

BOSTON – A Massachusetts federal judge has denied the parties’ motions for judgment on the pleadings in a dispute arising from a stock purchase agreement and a reinsurance contract, ruling there are questions of fact as to whether Pennsylvania General Insurance Co. (PGIC) was required to indemnify SPARTA Insurance Co. for claims.

On Jan. 13, Chief Judge F. Dennis Saylor of the U.S. District Court for the District of Massachusetts explained it is unclear from the pleadings whether a novation took place between the parties.

In June 2005, PGIC and AEIC entered into a reinsurance agreement, under which AEIC’s liabilities …