New York Court of Appeals
Excess Insurance Company Ltd., Respondents v. Factory Mutual Insurance Company, Formerly Known as Allendale…
December 2, 20043 N.Y.3d 577
Summary
The New York Court of Appeals affirmed the Appellate Division, holding that the reinsurers’ obligation to pay loss‑adjustment expenses under the reinsurance certificate is limited by the $7 million indemnity cap, and therefore they are not liable for expenses beyond that limit. Justice Read dissented, arguing the certificate is ambiguous and that the limit should be interpreted as cost‑exclusive.