Assured Guar. (UK) Ltd. v. J.P. Morgan Investment Mgt., Inc., No. 603755/2008, 2017 N.Y. Misc. LEXIS 617 (N.Y. Sup. Ct. Feb. 21, 2017); Ambac Assur. (UK) Ltd. v. J.P. Morgan Invest. Mgt., Inc., No. 650259/2009, 2017 N.Y. Misc. LEXIS 616 (N.Y. Sup. Ct. Feb. 21, 2017).
A New York state court sent two cases to trial and denied motions for partial summary judgment. The cases involved claims by note guarantors for breach of investment management agreements by an investment manager for reinsurance trust accounts set up to secure the obligations of special purpose vehicles in a significant life reinsurance transaction to enable a life reinsurer to meet its capital reserve requirements. The dispute was whether the investment manager complied with the Delaware Insurance Code when making certain trust account investments.
The court found issues of fact and denied the motions for partial summary judgment. The court set the cases down for trial on the issue of gross negligence. Subsequent to these decisions, the parties reached a settlement.