”WINTERTHUR” SWISS INSURANCE COMPANY COMPAGNIE EUROPEENE D’ASSURANCE INDUSTRIELLES SA V FIRST STATE INSURANCE COMPANY NEW ENGLAND INSURANCE COMPANY NEW ENGLAND REINSURANCE CORPORATION

(1995) 4 Re LR 123

United States District Court District of Connecticut

Before District Judge Alfred V Covello

Agency - Authority - London market reinsurance pool - Underwriting agent operating pool given written authority to underwrite “all types of insurance or reinsurance risks from wherever the offers may emanate” - Treaties negotiated and executed by agent in Boston, Massachusetts - Agreement between reinsurers and reinsured to arbitrate dispute arising out of treaties - Action by reinsurers to declare treaties invalid and void on grounds that agent acted beyond scope of authority in executing agreements - Whether agent’s authority to execute treaties was incidental to, and reasonably necessary to, accomplish grant of express authority - Whether fact that neither agent nor reinsurers were authorised to transact insurance business in Massachusetts affected plaintiffs’ obligations under agreements or limited scope of agency.

Arbitration - Reinsurance dispute - Estoppel - Motion by reinsurers for temporary restraining order and preliminary injunction to prevent arbitration proceedings from continuing - Whether reinsurers estopped from contesting validity of agreements by agreeing to arbitrate dispute over reinsurance contracts.