NORTH RIVER INSURANCE COMPANY V CIGNA REINSURANCE COMPANY (individually and as successor to INA Reinsurance Company) Nos 93-5743 and 93-5764

(1995) 4 Re LR 329

United States Court of Appeals (Third Circuit)

Before Circuit Judge Scirica, Circuit Judge Lewis and Circuit Judge Seitz

Follow the fortunes - Asbestos excess coverage - Defence costs - Construction of facultative reinsurance certificates - Wellington Agreement - Whether facultative reinsurance certificates issued by reinsurer to reinsured obligated reinsurer to indemnify reinsured for defence costs - Whether actions taken by reinsured in connection with its participation in Wellington Agreement violated its duty of good faith - Whether district court erred by refusing to reconsider its judgment to include, as an alternative basis for summary judgment, that reinsurance certificate's indemnity limit capped amount reinsurer was obliged to pay under policy.