Two US courts refuse to find jurisdiction over Bermuda
(re)insurers found not to be acting as an alter ego or agent of
their related entity.
Hollander et al. v XL Insurance (Bermuda)
Ltd1
US Court of Appeal of California, Second Appellate District,
Division One, 5 October 2012
The California Court of Appeal affirmed the trial court's
order dismissing the plaintiffs' complaint for lack of personal
jurisdiction against XL Insurance (Bermuda) Ltd
("XLIB").
The plaintiffs made claims relating to two damaged paintings
under two policies issued by XL Specialty under XL Capital
Ltd's ("XL Capital") Fine Art & Specie Brand. XL
Specialty did not contest jurisdiction and XL Capital waived
jurisdiction. XLIB is a wholly owned subsidiary of EXCEL Holdings
Limited which in turn is a wholly owned subsidiary of XL Capital.
The plaintiffs asserted, inter alia, that XL Capital, as the parent
company of related entities, was the alter ego of the other
defendants and operated a