LUDGATE INSURANCE CO. LTD. v. CITIBANK

[1996] LRLR 247

QUEEN’S BENCH DIVISION (COMMERCIAL COURT)

Mr. Justice WALLER:

Reinsurance - Letters of credit - Quota share reinsurance - Plaintiffs joined HSW underwriting pool - Defendants issued letters of credit - Agreement between plaintiffs and defendants setting out basis on which deposits to be held - Proper construction of agreement - Defendants gave notice that drawings between principals would be apportioned - Whether defendants acted reasonably - Whether defendants wrongly debited interest.