Plaintiff reinsurer Employers Insurance Company of Wausau (“Wausau”) filed a declaratory judgment action against defendant insurer Allianz Underwriters Insurance Company (“Allianz”) on July 29, 2010, in the United States District Court for the District of Columbia seeking to bar Allianz’s counsel from serving as counsel in an arbitration involving the two companies.
The underlying claim involved insurance coverage for claims of clergy sexual abuse against the Roman Catholic Archdiocese of Los Angeles. Upon receiving Allianz’s reinsurance billings, Wausau raised various questions in connection with its purported obligation under the reinsurance agreements to reimburse insurer for its share of the settlement. Wausau demanded Allianz provide certain information related to the claim. However, without providing all the necessary information, Allianz demanded that Wausau submit to arbitration.
Wausau now files this declaratory judgment action barring the law firm that Allianz has choose from representing Allianz in the arbitration matter because this same firm has also represented Wausau in the past. Wausau alleges that it had a deep and long-lasting relationship with this firm and has retained this firm to defend it in a series of reinsurance collection matters. In addition, since this firm served as the firm that represented Allianz in the underlying sexual abuse case leading to the payment dispute, it is likely this firm will serve as a witness to the pending reinsurance arbitration.
For a copy of the complaint is attached here
Sarah Fang and Rick Cohen