GE Reinsurance Corporation & Ors v New Hampshire Insurance Company & Anor

GE Reinsurance Corporation & Ors v New Hampshire Insurance Company & Anor

The 'Stabler Wording' in the reinsurance slip was a warranty, its breach discharged reinsurers from liability, and the retention provision did not require New Hampshire to retain the risk. There was no contributory negligence by New Hampshire, and Willis was liable to New Hampshire for the loss suffered due to failure to obtain back-to-back reinsurance.

Parties
Claimant: GE Reinsurance Corporation; Claimant: Great Lakes Reinsurance (UK) PLC; Defendant/part 20 Claimant: Sphere Drake Insurance Ltd; Defendant/part 20 Claimant: Royal & Sun Alliance Insurance PLC; Defendant/part 20 Claimant: New Hampshire Insurance Company; Part 20 Defendant: Willis Limited
Jurisdiction
England and Wales
Judgment Date
27 February 2003
Procedural Posture
Commercial Insurance/reinsurance Dispute / Judgment After Trial
Outcome
Reinsurers not liable under the reinsurance slip; New Hampshire entitled to damages from Willis without reduction for contributory negligence.
Legal Topics
Reinsurance Warranties, Construction of Insurance Contracts, Breach of Warranty, Contributory Negligence, Back to Back Insurance and Reinsurance, Brokers' Duties
Insurance Law Contract Law Commercial Law Reinsurance Warranties Construction of Insurance Contracts Breach of Warranty Contributory Negligence Back to Back Insurance and Reinsurance +1 more

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Parties

GE Reinsurance Corporation

Claimant

Great Lakes Reinsurance (UK) PLC

Claimant

Sphere Drake Insurance Ltd

Defendant/part 20 Claimant

Royal & Sun Alliance Insurance PLC

Defendant/part 20 Claimant

New Hampshire Insurance Company

Defendant/part 20 Claimant

Willis Limited

Part 20 Defendant

Procedural Posture

Commercial Insurance/reinsurance Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether the 'Stabler Wording' in the reinsurance slip was a warranty and if so, whether it was breached
  2. 2 Proper construction and effect of the retention provision in the reinsurance slip
  3. 3 Whether New Hampshire was contributorily negligent

Ratio Decidendi

The 'Stabler Wording' in the reinsurance slip was a warranty, its breach discharged reinsurers from liability, and the retention provision did not require New Hampshire to retain the risk. There was no contributory negligence by New Hampshire, and Willis was liable to New Hampshire for the loss suffered due to failure to obtain back-to-back reinsurance.

Court Disposition

Reinsurers not liable under the reinsurance slip; New Hampshire entitled to damages from Willis without reduction for contributory negligence.

Orders

  • Declarations that reinsurers are under no liability to New Hampshire under the reinsurance slip.
  • New Hampshire entitled to recover damages from Willis for the loss suffered by reason of the failure of the reinsurance, without reduction for contributory negligence.