Sphere Drake Insurance Limited, Formerly Known as Odyssey Re (London) Limited v. All American Insurance Company
Court of Appeals for the Seventh Circuit
1Opinion of the Court
EASTERBROOK, Circuit Judge.
Who pays losses incurred on seven insurance policies is a subject of dispute. All American Insurance underwrote the policies. Contracts apparently representing the agreement of Sphere Drake Insurance to reinsure these risks are in All American’s files — but Sphere Drake denies that it has agreed to any such reinsurance. A broker called Euro International Underwriting (“eiu”) wrote the reinsurance on Sphere Drake’s behalf, eiu had actual authority to represent Sphere Drake, but only up to an annual limit of risks. According to Sphere Drake, eiu exceeded this limit…
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