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ZEK Team Wins Lifting of $30M Stay in AIG Arbitration

On March 4, 2014, ZEK obtained an order from U.S. Bankruptcy Judge Cecelia G. Morris partially lifting a stay in St. Vincent Catholic Medical Centers of New York’s bankruptcy, allowing American International Group Inc. affiliate National Union Fire Insurance Company of Pittsburgh, Pa. to arbitrate four disputes totaling more than $30 million. The disputes include the question of whether $17 million in claims against the debtors for reserves under the hospital’s medical malpractice program are correctly valued, whether approximately $7 million of medical malpractice claims that had been “incurred, but not yet reported” are time-barred, and whether a claim against St. Vincent for $6.7 million were already paid as a reinsurance obligation.

The ZEK team members representing AIG and National Union in this matter were Michael S. Davis, Anthony I. Giacobbe, Mary G. McCarthy and Bryan D. Leinbach.