11th Cir. Reinstates Breach of Contract Claim Against OneBeacon in Reinsurance Dispute

ORLANDO, Fla. — A federal appeals court has reinstated a cedent’s breach of contract claim against OneBeacon Insurance Co., finding the cedent was obligated to defend its insured because the underlying claims did not fall within the primary policy’s “intentional acts” exclusion.

However, in the June 24 opinion, the 11th Circuit U.S. Court of Appeals affirmed dismissal of the cedent’s equitable estoppel claim, finding the reinsurer clearly informed the cedent that it did not believe the underlying suit implicated the reinsurance treaty.

Public Risk Management of Florida issued public officials’ errors and omissions insurance to the City of Winter …