EAGLE STAR INSURANCE COMPANY LTD. v. SPRATT

[1971] 1 Lloyd's Rep. 295

QUEEN'S BENCH DIVISION(COMMERCIAL COURT)

Before Mr. Justice Brandon (sitting as an additional Judge of the Queen's Bench Division)

Insurance - Reinsurance treaties - Settlement of disputes under "dry" treaties by chairman of reinsuring underwriters' negotiating committee - Whether binding on underwriters - Whether chairman had actual or ostensible authority to make such settlement - Whether underwriter's initials on statement of proposed terms of settlement gave authority to settle on those terms - Effect of alleged oral reservations by underwriter - Whether authority revoked - Whether settlement ratified by underwriter - Whether treaties varied by addenda stamped and signed by Lloyd's Policy Signing Office - Authority of Lloyd's Policy Signing Office - Whether stamping and signing ratified by underwriter. Agency - Agent - Express authority to agree terms - Whether implied authority to agree further terms if favourable to principal. Lloyd's - Practice - Addenda to reinsurance treaties stamped and signed by Lloyd's Policy Signing Office - Alleged authority of statements of proposed terms initialed by underwriters and draft addenda initialed by leading underwriters - Whether underwriters bound - Effect of additional term in addenda.