BROWN (R E) AND OTHERS v GIO INSURANCE LTD

[1998] Lloyd's Rep IR 201

COURT OF APPEAL

BEFORE LORD JUSTICE WALLER, LORD JUSTICE Chadwick AND SIR BRIAN NEILL

Excess of loss reinsurance - Construction - Special Conditions - “each and every loss and/or series of losses arising out of one event” - “The Reassured shall be the sole judge as to what constitutes each and every loss and/or one event.” - “The Reassureds definition of each and every loss and/or event shall be final and binding on the Reinsurers hereon.” - Whether parties intended to give reassured power to decide, in making claim, whether losses arose from one or more events for purpose of aggregation - Whether reassureds decision was a finding that the state of mind of each Individual underwriter was an “event” - Whether negligent underwriting could be an event - Whether reassureds decision reasonable.