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You are here: Home / Archives for Arbitration / Court Decisions / Contract Interpretation

Contract Interpretation

Judge finds ambiguity as to whether two reinsurance agreements provide for a single or an annual aggregate limit

July 24, 2006 by Carlton Fields

Cross motions for summary judgment were denied in Professional Consultants Insurance Co. v. Employers Reinsurance Co., Case No. 1:03-cv-216 (D. Vt. March 28, 2006), where the Court found that two reinsurance agreements covering professional liability policies were ambiguous as to whether the reinsurance provided an aggregate annual, or a per-policy, limit on the liability of the reinsurer. This case settled and was dismissed in June 2006. Professional Consultants Insurance Company v. Employers Reinsurance Company, 2006 WL 751244 (D. Vt. March 8, 2006) (slip opinion).

Filed Under: Contract Interpretation, Reinsurance Claims

Reinsurance offset dispute must be arbitrated

July 19, 2006 by Carlton Fields

In Aegis Security Insurance Co. v. Harco National Insurance Company, Case No. 06-0606 (USDC M.D. Pa. June 22, 2006), there was a dispute as to whether one party to two reinsurance agreements could offset an amount under one treaty against a liability owed under the other treaty. The reinsurance agreements contained an offset provision. The District Court compelled arbitration, holding that the dispute involved the interpretation of the offset provision, bringing the dispute within the arbitration provision, which required the arbitration of “any dispute arising out of the interpretation, performance or breach of this Agreement.”

Filed Under: Arbitration Process Issues, Contract Interpretation

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