Accident Reinsurance Facility Included in Commutation, Judge Rules

HARTFORD, Conn. - A commutation agreement included a casualty and accident reinsurance facility reinsured by Trenwick America Reinsurance Corp., therefore Trenwick is relieved of its payment obligations under the facility, a Connecticut state judge has ruled. Trenwick America Reinsurance Corp. v. W.R. Berkley Corp., et al., No. UWYX01CV094019148S (Conn. Super. Ct.).

Judge William T. Cremins of the Connecticut Superior Court further ruled, however, that Trenwick cannot recover sums it voluntarily paid after execution of the commutation agreement because the parties stood "on equal footing" with regard to knowledge of their respective contractual obligations.

Trenwick and W.R. Berkley subsidiary Signet Star …