Insurance – reinsurance

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Wisconsin Court of Appeals

Civil

Insurance – reinsurance – rehabilitation — segregation

The circuit court did not err in upholding the rehabilitation plan of an insolvent insurer.

“These are appeals of a circuit court order approving a rehabilitation plan of the segregated account of Ambac Assurance Corporation (Ambac) and other court orders entered earlier in this proceeding. Numerous interested parties challenge the validity of various provisions of the rehabilitation plan on various grounds as well as actions taken by the Office of the Commissioner of Insurance (commissioner) in relation to the formulation of the plan with the approval of the circuit court. The interested parties also challenge various court orders relating to numerous matters, including the approval of a proposed hearing schedule, the establishment of a segregated account, the issuance of injunctive relief, and the refusal to enjoin a settlement agreement between Ambac and a group of financial institutions. For the reasons that follow, we conclude that the circuit court properly exercised its discretion in confirming the rehabilitation plan and in entering the other orders that the interested parties challenge on appeal.”

Affirmed.

Recommended for publication in the official reports.

2010AP1291, 2010AP2022, 2010AP2835 & 2011AP561 Nickel v. Wells Fargo Bank

Dist. IV, Dane County, Johnston, J., Higginbotham, J.

Attorneys: For Appellant: Armstrong, Thomas, Milwaukee; Cisar, David I., Milwaukee; Lovern, Susan E., Milwaukee; Stroebel, Christopher J., Madison; Muth, R. Timothy, Milwaukee; Kelly, Daniel, Milwaukee; Nowicki, Bryan K., Madison; Polakowski, Jessica Hutson, Madison; Trostle, Patrick J., New York; Simon, John B., Chicago; Greenwald, David M., Chicago