HURST-BANNISTER AND ORS v NEW CAP REINSURANCE CO AND ORS

[2000] Lloyd's Rep IR 166

CHANCERY DIVISION

Before Mr John Jarvis QC (sitting as a Deputy Judge of the High Court)

Reinsurance - Letter of credit facility - Premiums to be used as security for issuance of letters of credit naming reinsured as beneficiary - Reinsurers becoming insolvent without opening letters of credit - Whether letter of credit facility created express purposes trust - Whether resulting trust arose on failure of purpose.