In the latest development in the Huntsman v. Int’l Risk Ins. Co. cases previously covered by this blog, the parties (including a group of Third Party Defendant Reinsurers) entered a joint stipulation agreeing to dismiss the case with prejudice. The stipulation specified that the case is to be dismissed in order to allow the parties to resolve the disputes between most of the third party defendants and Huntsman in mediation or arbitration. The Southern District of Texas expressed some apprehension at dismissing the case with prejudice because the decision was not based upon the merits of the case. However, because some case law existed within the circuit supporting dismissal with prejudice, the court granted the parties’ request and dismissed the action with prejudice. Huntsman Corp. v. Int’l Risk Ins. Co., Case No. 08-1542, (USDC S.D. Tex. Feb. 19, 2009).