English and American Insurance Company Ltd v AXA Re SA

English and American Insurance Company Ltd v AXA Re SA

EAIC was entitled to summary judgment for US$ 673,808 plus interest as this sum represented paid claims under four insurance contracts, properly settled and falling within the risks covered by the reinsurance contracts. The settlement was proper and businesslike, and Axa had no realistic prospect of defending liability for this amount. The correspondence relied upon was not protected by without prejudice privilege and was admissible as evidence of Axa's position.

Parties
Claimant: English and American Insurance Company Ltd (in a scheme of arrangement); Defendant: Axa Re SA
Jurisdiction
England and Wales
Judgment Date
20 December 2006
Procedural Posture
Commercial Insurance/reinsurance Dispute / Summary Judgment Application
Outcome
Summary judgment granted in part for the claimant
Legal Topics
Follow the Settlements Clause, Summary Judgment, Without Prejudice Correspondence, Scheme of Arrangement, Reinsurer's Liability
Insurance Law Reinsurance Law Commercial Law Follow the Settlements Clause Summary Judgment Without Prejudice Correspondence Scheme of Arrangement Reinsurer's Liability

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Parties

English and American Insurance Company Ltd (in a scheme of arrangement)

Claimant

Axa Re SA

Defendant

Procedural Posture

Commercial Insurance/reinsurance Dispute / Summary Judgment Application

Legal Issues

  1. 1 Whether the claimant is entitled to summary judgment for US$ 772,538 under the reinsurance contracts' follow the settlements clause
  2. 2 Whether the evidence referring to certain correspondence is admissible or protected by without prejudice privilege
  3. 3 Whether the settlement between EAIC and Dow constitutes a settlement triggering the reinsurer's liability under the reinsurance contracts

Ratio Decidendi

EAIC was entitled to summary judgment for US$ 673,808 plus interest as this sum represented paid claims under four insurance contracts, properly settled and falling within the risks covered by the reinsurance contracts. The settlement was proper and businesslike, and Axa had no realistic prospect of defending liability for this amount. The correspondence relied upon was not protected by without prejudice privilege and was admissible as evidence of Axa's position.

Court Disposition

Summary judgment granted in part for the claimant

Orders

  • Summary judgment entered for EAIC in the sum of US$ 673,808 plus interest from 29 January 2002
  • Axa's application to strike out evidence referring to the correspondence is dismissed