Insurance and Reinsurance

Insurance

Carmody Torrance Sandak & Hennessey represents insurers in complex claims and coverage litigation and arbitration. Carmody’s experience in insurance disputes includes all forms of policies, including property, casualty, directors and officers, professional liability, workers’ compensation, environmental, and general liability.

Representative matters include:

  • Prevailing in appraisal arbitration under property/casualty policy and subsequent actions to confirm award and enforce judgment.

  • Obtaining summary judgment on claims of breach of duty to defend under commercial liability policy.

  • Representation of insurer in connection with claims of breach of duties under legal malpractice policy.

  • Coverage claims arising out of alleged sexual assault of student by a school employee; alleged investment losses due to claimed fraud.

Reinsurance

Disputes among reinsurers, ceding insurers and other reinsurance industry constituents often involve specialized issues of custom and practice peculiar to the industry. Litigating reinsurance disputes has been an integral area of Carmody’s practice for many years.  The firm’s lawyers regularly litigate reinsurance disputes in state and federal courts and arbitrate them before private arbitrators.

We have handled complex matters involving many large reinsurers and ceding companies.  Our clients benefit from our unique representation in reinsurance matters—the firm’s partners who practice in the reinsurance arena are first and foremost trial lawyers with substantial trial experience across many disciplines. Our clients also benefit from our experienced team of partners, associates, and paralegals who are specially trained to handle reinsurance matters, efficiently and cost-effectively.    

Representative Matters include:    

  • Arbitrated, alongside Jenner & Block, claim by one reinsurer against another where the two reinsurers had entered into a risk-sharing joint venture.  The dispute involved liability under reinsurance contracts bound before the joint venture terminated, but not effective until after the joint venture terminated.
  • Defended a reinsurer against charges by its former Chief Executive concerning compensation relating to the reinsurer's performance.  The firm took the case over from New York counsel just four months before the hearing, with significant discovery incomplete.  The firm completed discovery, defended the client at the lengthy arbitration hearing and obtained a favorable award.
  • Defended reinsurer in arbitration commenced by ceding company concerning the denial by reinsurer of claims ceded under a treaty purporting to cover particular category of casualty business.  The firm demonstrated that the insurer failed to abide by its underwriting guidelines. The firm successfully defeated the petitioner’s claim that the follow-the-fortunes doctrine required payment of disputed billings.
  • Acted as involved local counsel, defending several reinsurers, in a complex, multi-phase reinsurance dispute involving $100 million in Connecticut Superior Court.  The case involved many dozens of reinsurers and treaties spanning several decades.
  • Co-defended claims against reinsurer for damages and declaratory relief brought by three affiliated plaintiffs in United States District Court claiming breach of facultative reinsurance certificate.  The lawsuit was complicated by the fact that the parties had ongoing mutual reinsurance relationships.  In view of the ongoing business relationships the parties successfully mediated the dispute.
  • Defended a reinsurer in federal court concerning the proper allocation of losses under a facultative reinsurance certificate. The matter was resolved by mediation before a federal magistrate judge.
  • Prosecuted multiple federal court injunction actions to enjoin arbitrations commenced against reinsurer by non-signatories to reinsurance agreements.
  • Ongoing representation of reinsurer in arbitration matters spanning range of reinsurance issues.

Insurance Agents and Brokers

The firm has represented insurance agents and brokers for over 30 years, particularly in defending claims of professional liability and enforcing our clients’ agreements with producers and others.  Several of the firm’s partners regularly litigate these disputes in state and federal courts and arbitrate them before private arbitrators.

We have handled complex matters involving many large agents and brokers. Our clients benefit from our unique representation—the firm’s partners who represent agents and brokers are first and foremost trial lawyers with substantial trial experience across many disciplines. Our clients also benefit from our experienced team of partners, associates, and paralegals who are specially trained to handle matters efficiently and cost-effectively.    

Representative Matters include:    

  • Defense of an insurance agent against suit claim that the defendant agent recommended and sold plaintiff family a health insurance policy that was improper, because it contained an alcohol/intoxication exclusion.  The plaintiff teenage family member suffered serious injuries in an automobile accident caused by his operation of a vehicle while intoxicated.  The health insurance carrier denied coverage under the exclusion, and plaintiffs brought this action
  • Defense of an insurance agency in professional liability case involving the sale of a comprehensive business liability insurance package to an oil company. Plaintiffs alleged that the defendant agency recommended and sold to them a business liability insurance package that was improper, because the pollution coverage contained certain exclusions.  The corporate plaintiff was required to respond to a pollution-type claim, for which the liability insurance carrier denied coverage under the exclusion, and plaintiffs brought this action.
  • Obtained emergency ex parte injunctive relief in federal court on behalf of national insurance broker against executive and employee who violated restrictive covenants, resulting in immediate return of stolen clients.
  • Enforced non-solicit agreement for national insurance broker, involving simultaneous proceedings in state and federal courts in Connecticut and California, and FINRA arbitration.