SKANDIA INTERNATIONAL CORP AND ANOTHER V NRG VICTORY REINSURANCE LIMITED COMMERCIAL UNION ASSURANCE PLC INDEMNITY MARINE ASSURANCE COMPANY LIMITED OCEAN MARINE ASSURANCE COMPANY LIMITED THE LONDON ASSURANCE GAN INSURANCE COMPANY LIMITED BISHOPSGATE INSURANCE LIMITED V NRG VICTORY REINSURANCE LIMITED

[1998] Lloyd's Rep IR 439

COURT OF APPEAL

Before LORD WOOLF MR, LORD JUSTICE POTTER and LORD JUSTICE MAY

Non-proportional excess of loss - Legal liability - No follow settlements clause - Promise to indemnify reinsured in settlement of its net loss - Payment made by direct insurers pursuant to settlement - Reinsurers right to require reinsured to show that he was legally liable to original assured - Judge equated US attorneys prediction with actual verdict of Texas court - Whether summary judgment in favour of reinsured should be set aside.