New York Court of Appeals Rules on Follow the Settlements Doctrine

February 2013 – We have been closely following and discussing with several clients the New York Court of Appeals decision in USF&G v. American Reinsurance Co. While the Court narrowed a summary judgment upholding a ceding company’s allocation of a complex asbestos settlement, its ruling affirming the cedent’s summary judgment in part confirms and arguably raises the high bar that reinsurers face when challenging their cedents’ allocations.

For further analysis of the decision, please see our case alert here.