Infrassure, Ltd. v. First Mut. Transp. Assur. Co., No. 16-306, 2016 U.S. App. LEXIS 20529 (2d Cir. Nov. 16, 2016).

The US Court of Appeals for the Second Circuit affirmed an order that denied a cedent’s request to compel arbitration under an endorsement and granted the reinsurer’s request for a declaratory judgment that the arbitration provision contained in the body of the certificate of facultative reinsurance controlled. We discussed this case in the Squire Patton Boggs Reinsurance Newsletter, March 2016. 

In affirming, the court held that the facultative certificate was not ambiguous. The arbitration clause in the body of the certificate controlled and was not displaced by the endorsement. The circuit court agreed with the district court that the endorsement was expressly limited to UK and Bermuda insurers, which was not the case here. The court also rejected the cedent’s argument that the title clause required the court to ignore the context provided by the title of the endorsement. The court found that a number of provisions would be rendered meaningless if the title clause were applied in the way the cedent suggested.