Source: All England Reporter
Publisher Citation: [2003] All ER (D) 214 (Jun)
Neutral Citation: [2003] EWHC 1073 (Comm)
Court: Commercial Court

Gavin Kealey QC sitting as a deputy High Court judge

Representation Stephen Hofmeyr QC and John Bignall (instructed by Holman Fenwick & Willan) for the claimant.
  Sioban Healy (instructed by Hill Taylor Dickinson) for the defendants.
Judgment Dates: 2 May 2003


Insurance - Reinsurance - Liability - Settlement of original claim - Construction of 'follow the settlements' clause.

The Case

Where reinsurers had bound themselves to a contract of reinsurance (in particular a faculative or proportional contract of reinsurance, not for example excess of loss) containing an unqualified follow the settlements clause in circumstances where the contracts of insurance and reinsurance were consciously back to back, the reinsurers had agreed that, if by admission or compromise the insurers accepted liability under the contract of insurance on a basis which, if valid, fell within the risks covered by the contract of reinsurance as a matter of law, they would follow that settlement.

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