SAIL V FAREX

(1993) 2 Re LR 16

Queen’s Bench Division Commercial Court

Before Judge Joel D Novak

Slip - Construction - “subject to reinsurance and security” added to acceptance of reinsurance line slip - Whether term of reinsurance or created condition precedent to reinsurer’s liability - Alleged misrepresentation and non-disclosure.

Misrepresentation - Broker - Reinsurer’s defence to Order 14 proceedings based on alleged misrepresentation - Whether broker offered to negotiate retrocession contract as agent for original clients - Whether triable issue or arguable defence that reinsured authorized broker to undertake responsibility for placing retrocession cover on behalf of reinsurers - Market practice.

Agency - Broker - Whether instructed by reinsured to obtain reinsurance - Broker offering retrocession cover to reinsurer.

Non-disclosure - Order 14 proceedings - Whether merits if any of non-disclosure defence in relation to reinsurance sufficient to disentitle reinsured from obtaining summary judgment.

Practice - Order 14 proceedings - Reinsurance dispute - Whether suitable for determination in proceedings for summary judgment under Order 14 where pleadings extensive and evidence voluminous.