Sun Life Assurance Company of Canada v CX Reinsurance Company Ltd.

Sun Life Assurance Company of Canada v CX Reinsurance Company Ltd.

The parties negotiated throughout on the basis that a formal signed treaty/addendum was a precondition to being bound by its terms, and there was no evidence that Sun Life’s underwriter had actual or ostensible authority to bind the company absent such signature. No binding arbitration agreement was concluded, and the application for a stay under s.9 of the Arbitration Act 1996 was properly dismissed.

Parties
Applicant/appellant/claimant: CX Reinsurance Company Limited (formerly CNA Reinsurance Company Ltd); Respondent/defendant: Sun Life Assurance Company of Canada
Jurisdiction
England and Wales
Judgment Date
06 March 2003
Procedural Posture
Civil Appeal / Appeal From High Court Judgment on Arbitration Application
Outcome
appeal dismissed
Legal Topics
Formation of Contract, Arbitration Agreements, Authority of Agents, Reinsurance Treaties, Ostensible Authority
Contract Law Arbitration Insurance Law Formation of Contract Arbitration Agreements Authority of Agents Reinsurance Treaties Ostensible Authority

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Parties

CX Reinsurance Company Limited (formerly CNA Reinsurance Company Ltd)

Applicant/appellant/claimant

Sun Life Assurance Company of Canada

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment on Arbitration Application

Legal Issues

  1. 1 Whether a binding arbitration agreement was concluded between the parties in the absence of a signed treaty
  2. 2 Whether ostensible authority existed for Sun Life's underwriter to bind the company to the treaty terms
  3. 3 Whether the parties intended to be bound only upon formal signature of the treaty/addendum

Ratio Decidendi

The parties negotiated throughout on the basis that a formal signed treaty/addendum was a precondition to being bound by its terms, and there was no evidence that Sun Life’s underwriter had actual or ostensible authority to bind the company absent such signature. No binding arbitration agreement was concluded, and the application for a stay under s.9 of the Arbitration Act 1996 was properly dismissed.

Court Disposition

appeal dismissed

Orders

  • Appellant to pay respondent’s costs of the appeal forthwith, such costs to be assessed if not agreed