Plaintiff
Defendant
Issue:
The case involved whether Infrassure Ltd., a retrocessionaire, was bound by a "Follow Settlements Clause" in its contract with VIG to reimburse VIG for its share of a $140 million settlement paid under a primary insurance policy.
Background:
In 2011, an incident at Vale Canada’s smelter led to a major business interruption claim. Zurich, the primary insurer, settled the claim for $140 million. VIG, a reinsurer, indemnified Zurich for its portion and sought reimbursement from Infrassure under the Retrocession Agreement. Infrassure refused, disputing its obligation under the Follow Settlements Clause.
Decision:
The trial court ruled in favor of VIG, holding that the Follow Settlements Clause unambiguously required Infrassure to follow Zurich’s settlement unless expressly limited by the Retrocession Agreement, which it was not.
Appeal Findings:
Conclusion:
The Ontario Court of Appeal dismissed the appeal, affirming that Infrassure was liable for $8.97 million, plus costs of $150,000 to VIG.
Court
Court of Appeal for OntarioCase Number
COA-23-CV-1153Practice Area
Insurance lawAmount
$ 9,119,760Winner
PlaintiffTrial Start Date