Introduction
Today we look at a reinsurance case recently decided by the New York Supreme Court, Appellate Division, First Department, New York’s intermediate appellate court for cases originating in New York County (Manhattan) and certain other counties in the New York metropolitan area. We would not characterize Gulf Ins. Co. v Transatlantic Reins. Co., ___ A.D.3d ___, 2009 NY Slip Op. 06788 (1st Dep’t Oct. 1, 2009) (copy here), as a ground-breaker, but it involves a number of interesting issues, including the interpretation and construction of a quota share treaty, course of performance, reformation and rescission.
Substantive reinsurance cases are a relatively rare breed to begin with (especially in recent years), and cases that discuss a broad range of issues in some depth are rarer still. That makes Gulf/Transatlantic worthy of some attention, especially to those interested in learning a few reinsurance law basics. Hat tip to my friend and former colleague James P. Tenney for bringing the case to our attention.
