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Note: When Dunav Insurance Company (Reinsurer) failed to pay its obligations on four separate Reinsurance Agreements, Eric R. Dinallo, as Liquidator of Midland Insurance Company (Insurer), sued in the New York Supreme Court, New York County, to recover US$840,801.18 plus interest from those claims. Insurer also alleged that Reinsurer breached its contractual duty to provide letters of credit to secure its financial obligations under the Reinsurance Agreements. Insurer demanded that Reinsurer post an irrevocable letter of credit in the amount of US$2,177,961.18. Reinsurer removed the action to a federal court based on the existence of diversity jurisdiction. The District Court for the Southern District of New York, Cote, J. granted Insurer's motion to remand the case to state court, as the Reinsurance Agreements required Reinsurer to submit to jurisdiction in any proper forum selected by Insurer, which operated as a waiver of Reinsurer's right to remove the action to federal court. [JEB/sal]

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