The Second Circuit has partially vacated summary judgment
rulings in a case involving the reinsurance of asbestos-related
risks. The case involves Utica Mutual Insurance Company and it
reinsurer Clearwater Insurance Company, regarding Clearwater's
reinsurance obligations arising from claims of Utica's insured,
Goulds Pumps, Inc. Utica had issued various primary and umbrella
liability insurance policies to Goulds from the 1950s to the 1990s.
In the 1990s, Goulds faced many thousands of asbestos-related
person injury claims, for which it turned to Utica for coverage.
Clearwater had reinsured the 1978 and 1979 umbrella policies under
two reinsurance certificates (the "Clearwater
Certificates") and the 1979-1981 umbrella policies under three
reinsurance contacts as part of a pool of reinsurers managed by
Towers, Perrin, Forster & Crosby, Inc. (the "TPF&C
Memoranda"). When Utica sought coverage from Clearwater,
Clearwater objected on three grounds: (1) Utica had no
