Breach of Warranty Clause Issue Sent to Trial

PROVIDENCE, R.I. - A Rhode Island federal judge has ruled that Yosemite Insurance Co. has no continuing obligation to pay reinsurance claims filed in connection with an underlying excess umbrella policy issued to Champion International because the cedent breached the retention warranty clause. Seaton Insurance Co. v. Yosemite Insurance Co., No. 08-542 (D. R.I.).

However, a jury will decide whether the cedent, Seaton Insurance Co., breached the retention warranty clause in an excess umbrella policy issued to Westinghouse Electric Corp., Judge William E. Smith of the U.S. District Court for the District of Rhode Island ruled Nov. 3.

The …