||All England Reporter
|| All ER (D) 214 (Jun)
|| EWHC 1073 (Comm)
Gavin Kealey QC sitting as a deputy High Court judge
||Stephen Hofmeyr QC and John Bignall (instructed by Holman Fenwick & Willan) for the claimant.
||Sioban Healy (instructed by Hill Taylor Dickinson) for the defendants.
||2 May 2003
Insurance - Reinsurance - Liability - Settlement of original claim - Construction of 'follow the settlements' clause.
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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