Certain London Market Company Reinsurers v. Lamorak Insurance Co., No. 18-cv-10534-NMG, (D. Mass. Nov. 8, 2019).
In our June 2019 Newsletter, we reported on this reinsurance dispute over the cession to facultative reinsurers of a large environmental pollution settlement between the cedent and the underlying policyholder. This decision involves discovery. The cedent sought documents and interrogatory responses from the reinsurers concerning the reinsurers’ billing and allocation of their own settlement with the underlying policyholder. The Magistrate Judge denied the cedent’s motion to compel production because the court found that the relevance of the materials sought too speculative and production would be difficult and unduly burdensome. The court noted that the similar request was denied in similar ligation in state court with another group of reinsurers.