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Decisions in Reinsurance Coverage Dispute, Plus a Drug Conviction Reversed

By FindLaw Staff on June 09, 2010 | Last updated on March 21, 2019

Travelers Cas. & Sur. Co. v. Ins. Co. of N. Am., No. 06-4100, concerned a dispute over reinsurance coverage, involving allegations of manipulation of post-settlement allocation. The court affirmed the district court's judgment for the most part, including the district court's Phase I order in Traveler's favor as INA did not meet its burden at trial of showing that the allocation decisions it was challenging were driven primarily by reinsurance considerations, as well as the district court's Phase II ruling that INA is not bound by Traveler's decision to annualize the per-occurrence limits of the policies INA reinsured.  Lastly, the court affirmed district court's ruling that post-judgment interest on the pre-judgment interest did not begin to accrue until the district court issued its order quantifying the amount of pre-judgment interest due. 

However, the court vacated in part and remanded in concluding that the district court should have calculated the prejudgment interest owed to Travelers according to the New York rate.   

US v. Liburd, No. 09-3156, the court faced a challenge to a conviction of defendant for possession with intent to distribute 500 grams or more of cocaine and attempted importation of the drugs.  In vacating the judgment, the court held that the prosecutor's use of defendant's statement, made at the airport, "so infected the trial with unfairness as to make the resulting conviction a denial of due process.   

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