In re Rehabilitation of Scottish RE (U.S.), Inc.
Annotate this Case
In this case involving the receivership that Scottish Re (U.S.), Inc. (the Company) was placed under the Court of Chancery held that, when seeking court approval for the Company's rehabilitation plan, the Insurance Commissioner of the State of Delaware will not need to demonstrate that the rehabilitation plan meets the "Liquidation Standard" discussed in this opinion.
The Commissioner proposed a rehabilitation plan, but the parties could not agree on the standard that the court would apply when determining whether to approve the rehabilitation plan. Specifically at issue was whether the Commissioner would have to prove that he validly determined that the rehabilitation plan treated each claimant at least as well as the claimant would fare in a liquidation of the Company, a component known as the Liquidation Standard and whether the court should require compliance with the Liquidation Standard as a matter of common law. The Court of Chancery held (1) the statutory scheme does not require compliance with the Liquidation Standard; and (2) common law does not require compliance with the Liquidation Standard.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.