Fla. Federal Judge Dismisses Suit Against OneBeacon; Finds Reinsurance Treaty was Not Implicated

ORLANDO, Fla. — A Florida federal judge has dismissed a suit against OneBeacon Insurance Co. seeking reinsurance proceeds for an underlying breach of contract action, finding the cedent was not obligated to defend its insured because the policy excluded intentional breaches of contract.

On Oct. 18, Judge Gregory A. Presnell of the U.S. District Court for the Middle District of Florida further ruled that coverage does not exist under a theory of promissory estoppel because OneBeacon clearly informed the cedent that it did not believe the underlying suit implicated the reinsurance treaty.

Public Risk Management of Florida issued public …