About a year ago, www.insurereinsure.com reported on the New York Appellate Division's ruling in Allstate Ins. Co. v. American Home Assurance Co., No. 9335 (App. Div., 1st Dept. June 12, 2007), which reversed a lower court's decision and held that Allstate was not required to follow the fortunes of American Home's loss allocation on a single occurrence "per site" basis, finding that American Home manipulated its allocation to exceed the facultative reinsurance contract's $1 million per-occurrence deductible in order to maximize its reinsurance recoveries. (Click here to review previous post.) Specifically, the court noted that American Home's allocation directly contradicted a federal district court's ruling in a related litigation involving American Home and its insured as to the number of occurrences issue and the legal position advanced by American Home and its insured in that litigation.
American Home filed a motion for leave to appeal the decision to the New York Court of Appeals. Recently, however, the Court of Appeals denied American Home's motion without opinion, apparently ending the case.