Sex Abuse Reinsurance Coverage Action Remanded to Calif. State Court

LOS ANGELES — A federal judge has remanded a lawsuit filed against a California joint powers authority against Munich Reinsurance Co., accusing the reinsurer of wrongly refusing to pay relating to four underlying sexual abuse lawsuits filed against member school districts.

On Nov. 20, Judge Mark C. Scarsi of the U.S. District Court for the Central District of Los Angeles ruled that diversity jurisdiction is lacking because the Alliance of Schools for Cooperative Insurance Programs (ASCIP) is an arm of the state and is therefore not a citizen of California or any other state.

From February 2009 through May 2009, …