Insurance Settlement in Residual Value Coverage Dispute

In the midst of a five-week arbitration, we recovered, through settlement, approximately $100 million for an automobile distributor seeking insurance coverage for residual value losses on a large portfolio of leased vehicles.  In the course of the dispute, we secured rulings that our client could pursue its claims directly against the reinsurers, bypassing its own captive insurer; and that our client was not bound by an unfavorable arbitration clause in the captive insurance contract because the clause did not apply to the reinsurers.