Sentry’s Counterclaims Barred by Doctrines of Laches, Waiver, R&Q Asserts in $4.5 Million Action

CHICAGO — In response to Sentry Insurance Co.’s assertion that it breached two reinsurance contracts by failing to pay $4.5 million for underlying asbestos- and fire-related losses, R&Q Reinsurance Co. contends that Sentry failed to promptly notify the reinsurer of the losses.

In its reply to Sentry’s counterclaims, R&Q maintains that it was prejudiced by the untimely notice, therefore Sentry’s counterclaims are barred by the doctrines of laches and waiver.

R&Q’s predecessor, INA Reinsurance Co., issued Sentry a facultative certificate effective Jan. 1, 1978, to Jan. 1, 1979, which covered a Sentry umbrella policy issued to Reilly Benton Company Inc. …