Amerisure Mutual Ins. Co. v. Swiss Reinsurance Am. Corp.

CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 4, 2025
Docket24-1492
StatusUnpublished

This text of Amerisure Mutual Ins. Co. v. Swiss Reinsurance Am. Corp. (Amerisure Mutual Ins. Co. v. Swiss Reinsurance Am. Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amerisure Mutual Ins. Co. v. Swiss Reinsurance Am. Corp., (6th Cir. 2025).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 25a0518n.06

No. 24-1492

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT FILED Nov 04, 2025 AMERISURE MUTUAL INSURANCE ) KELLY L. STEPHENS, Clerk COMPANY, fka Michigan Mutual Insurance ) ) Company, ) Plaintiff-Appellant, ) ON APPEAL FROM THE ) UNITED STATES DISTRICT v. ) COURT FOR THE EASTERN ) DISTRICT OF MICHIGAN SWISS REINSURANCE AMERICA ) CORPORATION, ) OPINION Defendant-Appellee. ) ) )

Before: MOORE, GRIFFIN, and RITZ, Circuit Judges.

GRIFFIN, Circuit Judge.

This appeal concerns whether collateral estoppel precludes plaintiff Amerisure Mutual

Insurance Company from litigating an issue in federal court that was previously decided against it

in an arbitration between Amerisure and one of its reinsurance providers, Allstate. Now, under

identical reinsurance policy provisions at issue in that arbitration, Amerisure seeks a declaratory

judgment to recover defense costs from a different reinsurance provider, defendant Swiss

Reinsurance America Corporation (“Swiss Re”), arguing that it is not estopped from litigating the

same issue because Swiss Re was not a party to the arbitration. The district court disagreed and

granted summary judgment in Swiss Re’s favor on collateral-estoppel grounds. We affirm. No. 24-1492, Amerisure Mut. Ins. Co. v. Swiss Reinsurance Am. Corp.

I.

From 1979 to 1981, Amerisure issued several primary and umbrella insurance policies to

Armstrong International, a manufacturer of building materials. To help cover these multi-million-

dollar policies, Amerisure purchased reinsurance (insurance for insurance companies) from several

reinsurance providers, including Swiss Re and non-party Allstate, under reinsurance contracts

known as facultative certificates. See Allstate Ins. Co. v. Amerisure Mut. Ins. Co., 2020

WL 1445615, at *1 (N.D. Ill. Mar. 25, 2020). Pursuant to the facultative certificates between

Swiss Re and Amerisure, Swiss Re must cover any liability owed by Amerisure to Armstrong up

to the umbrella policy limits.

Over several decades, thousands of claimants sued Armstrong, alleging that it

manufactured, distributed, or sold building materials that contained asbestos. Under its primary

insurance policies with Armstrong, Amerisure paid for Armstrong’s defense costs and indemnified

it for its losses. When Armstrong exhausted the limits of these primary policies, it requested

additional defense costs under its umbrella policies with Amerisure. Notably, Amerisure agreed

to continue paying Armstrong’s defense costs in addition to—as opposed to within—the umbrella

policy limits.

Amerisure sought reimbursement from its reinsurance providers for the defense costs it

had paid towards the Armstrong asbestos litigation. Swiss Re paid millions of dollars in

reinsurance, but only up to the umbrella policy limit of $3,500,000. Swiss Re—and the other

reinsurers, like Allstate—refused to reimburse defense costs that Amerisure paid in addition to the

policy limits because the umbrella policies did not contractually obligate Amerisure to pay these

costs. Those costs, the reinsurers argued, are therefore not covered by the facultative certificates.

-2- No. 24-1492, Amerisure Mut. Ins. Co. v. Swiss Reinsurance Am. Corp.

Prior to this litigation, Allstate initiated arbitration proceedings with Amerisure to resolve

the defense-cost dispute. Id. After eighteen months of arbitration, which included discovery,

briefing, and hearings, the arbitration panel unanimously decided that the umbrella policies only

required Amerisure to pay defense costs within the umbrella policy limits. Allstate was therefore

not liable for Amerisure’s payment of defense costs beyond those limits. Nonetheless, shortly

after the arbitration panel issued its final decision, Amerisure sought and received judicial

confirmation of the award in federal court because it considered the award favorable overall. Id.

at *3, *7.

Years later, Amerisure filed a complaint against Swiss Re, requesting a declaratory

judgment that would allow it to recover defense costs from Swiss Re based on the same umbrella

policies that were at issue in the Allstate arbitration. The stakes are high: Amerisure has incurred

millions of dollars of defense costs from Armstrong’s asbestos litigation, well beyond the umbrella

policy limits, and it anticipates more lawsuits against Armstrong in the future.

Amerisure and Swiss Re each moved for summary judgment. In its motion, Amerisure

made the same arguments that it made against Allstate during arbitration to support its position

that its umbrella policies with Swiss Re, which contain identical provisions to those at issue in the

Allstate arbitration, obligate Swiss Re to reimburse Amerisure for any defense costs that

Amerisure paid in addition to the umbrella policy limits. For its part, Swiss Re argued that

collateral estoppel precluded Amerisure from litigating the defense-cost issue again because it was

fully, fairly, and finally decided in arbitration, in Allstate’s favor and against Amerisure. The

district court granted summary judgment in Swiss Re’s favor, holding that Amerisure was

collaterally estopped from relitigating the defense-cost issue. Amerisure timely appealed.

-3- No. 24-1492, Amerisure Mut. Ins. Co. v. Swiss Reinsurance Am. Corp.

II.

We review de novo a district court’s resolution of cross-motions for summary judgment

and its application of collateral estoppel. See Stryker Corp. v. Nat’l Union Fire Ins. Co., 681 F.3d

819, 823 (6th Cir. 2012) (de novo review of summary judgment in a declaratory-relief suit); In re

Calvert, 105 F.3d 315, 317 (6th Cir. 1997) (de novo review of collateral-estoppel determination).

“Summary judgment is appropriate if, viewing the evidence and drawing all reasonable inferences

in the light most favorable to the nonmoving party,” there is “no genuine issue as to any material

fact” and the movant is entitled to judgment as a matter of law. CMACO Auto. Sys., Inc. v.

Wanxiang Am. Corp., 589 F.3d. 235, 241–42 (6th Cir. 2009) (citation omitted); see Fed. R. Civ.

P. 56(a).

III.

Collateral estoppel, also known as issue preclusion, prevents a party from “raising an

argument that [it] already fully litigated in an earlier legal proceeding.” See Anderson v. City of

Blue Ash, 798 F.3d 338, 350 (6th Cir. 2015). It is an equitable doctrine that applies in the interest

of fairness and judicial economy and can be set aside when its “application would contravene an

overriding public policy or result in manifest injustice.” Harrington v. Vandalia-Butler Bd. of Ed.,

649 F.2d 434, 439 (6th Cir. 1981).

To decide whether collateral estoppel applies, we look to several elements. These elements

are derived from state or federal law, depending on which applies. Typically, federal courts “look

to the common law or to the policies supporting res judicata and collateral estoppel in assessing

the preclusive effect of decisions of other federal courts.” Hamilton’s Bogarts, Inc. v. Michigan,

501 F.3d 644, 650 (6th Cir. 2007) (quoting Allen v.

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