BAKER v BLACK SEA & BALTIC GENERAL INSURANCE COMPANY LIMITED

[1998] Lloyd's Rep IR 327

HOUSE OF LORDS

Before Lord BROWNE-WILKINSON, Lord WOOLF, Lord LLOYD OF BERWICK, Lord HOFFMANN and Lord HUTTON

Proportional facultative obligatory reinsurance - Costs/legal expenses - Implied term - Market custom - Cover note providing “wording to be agreed”, “subject to all terms, clauses and conditions as the original and to follow the settlements and agreements of [reinsured] in all respects” - General portfolio of US and Canadian fire and casualty business - Reinsurers liability in respect of amounts paid by reinsured to its assured or reassured in respect of costs! legal expenses - Whether term implied by law or by market custom.