Reinsurer Lacks Standing to Bring Declaratory Judgment Action, N.Y. Federal Judge Rules

NEW YORK – A New York federal judge has dismissed a declaratory judgment action in which a reinsurer sought to disclaim an obligation to defend or indemnify a general contractor in a series of lawsuits under a primary and excess policy, ruling that the reinsurer lacks standing to bring the action because it is not a party to the policies.

In a Sept. 27 order, Judge Eric Komitee of the U.S. District Court for the Eastern District of New York explained that under New York case law, no privity exists between the reinsurer and the original insured.

In November 2018, …