Federal Appellate Court Upholds Ruling for Reinsurers, Broker in $26 Million Action

WASHINGTON, D.C. — A federal appellate panel has upheld a ruling in favor of a group of reinsurers accused of breaching an implied contract by refusing to pay a $26 million arbitration award issued in favor of Vantage Commodities Financial Services Inc., affirming there was no implied contract between the parties.

In an April 22 opinion, the District of Columbia Court of Appeals also affirmed that Vantage’s claims against the three Willis broker defendants are barred by the economic loss doctrine.

Assured Risk Transfer PCC LLC (ART) sold Vantage a credit insurance policy covering Vantage’s losses up to $22 million …