CHARMAN V GUARDIAN ROYAL EXCHANGE ASSURANCE PLC CIGNA INSURANCE CO OF EUROPE SANV

(1993) 2 Re LR 324

Queen’s Bench Division Commercial Court

Before Mr Justice Webster

Follow the settlements - Construction - “liable or not liable” - Whether reassured relieved of obligation to settle claims in businesslike way - Whether reassured discharged obligation by appointing reputable adjuster - Whether burden of proof lay on reinsurer to displace reassured’s right to rely on “follow settlements” clause - Whether implied term entitled reinsurer to obtain documents and information from reassured to enable reinsurer reasonably to satisfy himself that claim under “follow settlements” clause fell within terms of reinsurance policy and had been settled in compliance with businesslike obligation.