SIRIUS INTERNATIONAL INSURANCE CO (PUBL) v FAI GENERAL INSURANCE LTD

[2005] Lloyd's Rep IR 294

HOUSE OF LORDS

Before Lord Bingham of Cornhill, Lord Nicholls of Birkenhead, Lord Steyn, Lord Walker of Gestingthorpe and Lord Brown of Eaton-under-Heywood

Reinsurance - Agreement for fronting arrangement supported by back to back retrocession - reinsurers requiring letter of credit - Agreement that no draw down was possible until retrocessionaires agreed that reinsurers should pay a claim - Dispute between parties resolved by Tomlin order - Whether Tomlin order amounted to agreement that reinsurers should pay a claim - Whether reservation of rights in Tomlin order in relation to letter of credit overrode right to recover under letter of credit following agreement that payment should be made.