Amer Home Assurance v. Hughes

U.S. Court of Appeals for the Sixth Circuit

Amer Home Assurance v. Hughes

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS

81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB

$0(5,&$1 +20( $6685$1&( ; &203$1<  3ODLQWLII$SSHOOHH   1R  Y !   )5$1. 0 +8*+(6 6+(,/$  : +8*+(6  'HIHQGDQWV$SSHOODQWV   1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW/H[LQJWRQ 1R  n+HQU\5:LOKRLWsU'LVWULFWsXGJH $UJXHG sXQH 'HFLGHGDQG)LOHG 1RYHPEHU %HIRUH %2**66,/(5DQG0225(&LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8('   /RZHOO ( 6SHQFHU (' 63(1&(5j6 /$: 2)),&( 3DLQWVYLOOH .HQWXFN\ IRU $SSHOODQWV  7RGG 6 3DJH672//.((121 3$5./H[LQJWRQ.HQWXFN\IRU $SSHOOHH21%5,() /RZHOO(6SHQFHU('63(1&(5j6 /$: 2)),&( 3DLQWVYLOOH .HQWXFN\ IRU $SSHOODQWV

  $PHULFDQ+RPH$VVXUDQFH 1R 1R $PHULFDQ+RPH$VVXUDQFH  &RY+XJKHVHWDO &RY+XJKHVHWDO

7RGG 6 3DJH 672// .((121  3$5. /H[LQJWRQ )RU WKH IRUHJRLQJ UHDVRQV WKH GLVWULFW FRXUW V JUDQW RI .HQWXFN\IRU$SSHOOHH VXPPDU\MXGJPHQWWR$PHULFDQLV5(9(56('DQGWKHFDVH LV5(0$1'('IRUHQWU\RIMXGJPHQWLQFRQIRUPLW\ZLWKWKLV BBBBBBBBBBBBBBBBB RSLQLRQ 23,1,21 BBBBBBBBBBBBBBBBB 6,/(5&LUFXLWsXGJH'HIHQGDQWV)UDQN0+XJKHVDQG 6KHLOD:+XJKHVDSSHDOWKHGLVWULFWFRXUW VJUDQWRIVXPPDU\ MXGJPHQW LQ IDYRU RI SODLQWLII $PHULFDQ +RPH $VVXUDQFH &RPSDQ\ m$PHULFDQl LQDGLVSXWHUHJDUGLQJ$PHULFDQj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

$OOVWDWH ,QV &R  $'G  1< $SS 'LY   ODZEXWEHORZWKHPLQLPXPFRYHUDJHUHTXLUHG VDPH 6WHYHQVY$PHULFDQ6HUY0XW,QV&R$G LQ.HQWXFN\  '&   VDPH ,WDSSHDUVWKDWLQPDQ\LIQRWDOORI WKHVH FDVHV WKH LQVXUHG KDG SXUFKDVHG RQO\ WKH PLQLPXP $ GHFODUDWRU\ MXGJPHQW DFWLRQ ZDV ILOHG E\ $PHULFDQ DPRXQWRIXQLQVXUHGPRWRULVWFRYHUDJH7KXVWKHVHFDVHVGR DJDLQVW WKH +XJKHVHV LQ UHVSRQVH WR D GLVSXWH UHJDUGLQJ QRW FRQVLGHU WKH DYDLODELOLW\ RI DGGLWLRQDO FRYHUDJH ZKHQ $PHULFDQjVPD[LPXPOLDELOLW\XQGHUWKHXQLQVXUHGPRWRULVW GHWHUPLQLQJWKHDSSURSULDWHUHFRYHU\ LQVXUDQFH SROLF\ DV D UHVXOW RI WKH DFFLGHQW LQ )ORULGD $PHULFDQ DVNHG WKH GLVWULFW FRXUW WR GHFODUH WKDW LW ZDV ,Q 9LJQHDXOW Y 7UDYHOHUV ,QV &R  $G  1+ REOLJDWHGWRSD\DPD[LPXPRIZKLFKUHSUHVHQWV    WKH 1HZ +DPSVKLUH 6XSUHPH &RXUW DGGUHVVHG WKH DPRXQW RI FRYHUDJH UHTXLUHG WR PDNH WKH WRUWIHDVRUj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mRQFHDYLFWLPLVLQMXUHG +XJKHVHVjSROLF\RUWKHPD[LPXPVXPRI ,Q E\DPRWRULVWZKRIDOOVZLWKLQWKHGHILQLWLRQRIDQXQLQVXUHG WKHLU DQVZHU WKH +XJKHVHV DVNHG WKH FRXUW WR GHFODUH WKDW PRWRULVW WKH SURSHU ILJXUH WR ZKLFK RQH VKRXOG ORRN WR $PHULFDQjVPD[LPXPOLDELOLW\DIWHUVWDFNLQJWKH GHWHUPLQH PD[LPXP UHFRYHU\ LV WKH DPRXQW RI FRYHUDJH RIXQLQVXUHGPRWRULVWFRYHUDJHIRUHDFKRIWKHLUVL[YHKLFOHV SXUFKDVHGl,GDW  ZDV,QWKHDOWHUQDWLYHWKH+XJKHVHVDVNHGIRU DMXGJPHQWLQWKHVXPRI WKHGLIIHUHQFHEHWZHHQ :HDJUHHZLWKWKHKROGLQJLQ9LJQHDXOWDQGFRQFOXGHWKDW WKH  RI VWDFNHG FRYHUDJH DQG WKH WRUWIHDVRUjV WKHPD[LPXPUHFRYHU\LQWKLVFDVHLVJRYHUQHGVROHO\E\WKH  RI FRYHUDJH  RU  DUULYHG DW E\ DPRXQW RI FRYHUDJH SXUFKDVHG E\ WKH +XJKHVHV VWDFNLQJ   ZKLFK LV WKH GLIIHUHQFH EHWZHHQ WKH $FFRUGLQJO\ EDVHG RQ WKH FRQWUDFWXDO DJUHHPHQW LQ WKH  FRYHUDJH DQG WKH WRUWIHDVRUjV  LQVXUDQFHSROLF\$PHULFDQjVPD[LPXPOLDELOLW\LV FRYHUDJHIRUHDFKRIWKHVL[YHKLFOHV SHUYHKLFOHRUWRWDOOHVVWKHWRUWIHDVRUjVSROLF\OLPLW RI  SHU SROLF\ UHVXOWLQJ LQ D PD[LPXP OLDELOLW\ RI   $00 )OD 6WDW FK   3XUVXDQW WR .\ 5HY 6WDW †    XQLQVXUHG PRWRULVW FRYHUDJH LV D PDQGDWRU\ FRPSRQHQW RI .HQWXFN\ DXWRPRELOH LQVXUDQFH XQOHVV H[SUHVVO\ UHMHFWHG E\ WKH LQVXUHG 3XUVXDQW WR .\ 5HY 6WDW †    D  LQVXUHGV VDWLVI\ WKH PDQGDWRU\ UHTXLUHPHQW E\ SURFXULQJ HLWKHU VSOLW OLPLWV OLDELOLW\

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

'XULQJWKHSURFHHGLQJVEHIRUHWKHGLVWULFWFRXUWWKHSDUWLHV WKHMXGJPHQWmWRWKHH[WHQWRIWKHSROLF\OLPLWVRQWKH DJUHHGWKDWWKHUHZHUHQRJHQXLQHLVVXHVRIPDWHULDOIDFW7KH YHKLFOHRIWKHSDUW\UHFRYHULQJ>WKHMXGJPHQW@OHVVWKH GLVWULFWFRXUWIRXQGWKDW$PHULFDQjVPD[LPXPOLDELOLW\ZDV DPRXQWSDLGE\WKHOLDELOLW\LQVXUHURIWKHSDUW\UHFRYHUHG   ZKLFK UHSUHVHQWV D SD\PHQW RI  LQ DJDLQVWlUHJDUGOHVVRIKRZWKHSROLF\OLPLWVRIWKHSDUW\ XQLQVXUHG PRWRULVW FRYHUDJH IRU HDFK RI WKH VL[ YHKLFOHV UHFRYHUHGDJDLQVWFRPSDUHZLWKWKHVWDWXWRU\PLQLPXP LQVXUHGXQGHUWKH+XJKHVHVjSROLF\ OLPLWV (YHU\ .HQWXFN\ SROLF\KROGHU REWDLQV WKH UHODWLYHO\ 6WDQGDUGRI5HYLHZ PRGHVW XQLQVXUHGXQGHULQVXUHG FRYHUDJH GHVFULEHG LQ .\ 5HY 6WDW  XQOHVV KH RSWV RXW RI VXFK :H UHYLHZ D JUDQW RI VXPPDU\ MXGJPHQW GH QRYR  6HH FRYHUDJHE\UHMHFWLQJLWLQZULWLQJ &KDRY+DOO+ROGLQJ&R,QF)G WK&LU    6XPPDU\ MXGJPHQW VKRXOG EH JUDQWHG ZKHQ mWKH HPSKDVLVDGGHG  SOHDGLQJV GHSRVLWLRQV DQVZHUV WR LQWHUURJDWRULHV DQG DGPLVVLRQVRQILOHWRJHWKHUZLWKWKHDIILGDYLWVLIDQ\VKRZ $VGLVFXVVHGE\WKLVFRXUWLQ5R\.\5HY6WDW†  WKDWWKHUHLVQRJHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKDW  FRQWHPSODWHV SD\PHQW UHJDUGOHVV RI WKH WRUWIHDVRUjV WKHPRYLQJSDUW\LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURIODZl SROLF\ OLPLWV  $GGLWLRQDOO\ WKLV VWDWXWH ZDV LQWHQGHG WR )HG5&LY3 F $GLVWULFWFRXUWjVLQWHUSUHWDWLRQRIVWDWH SURYLGH FRYHUDJH EH\RQG WKH UHODWLYHO\ PRGHVW ODZLVDOVRJRYHUQHGE\WKHGHQRYRVWDQGDUGRQDSSHDO6HH XQLQVXUHGXQGHULQVXUHGFRYHUDJHPDQGDWHGLQ.\5HY6WDW )HUUR&RUSY*DUULVRQ,QG,QF)G   WK †   $PHULFDQ SURYLGHG D SROLF\ WR WKH +XJKHV &LU   ZKLFKKDGXQLQVXUHGPRWRULVWOLDELOLW\OLPLWVZHOOEH\RQGWKH PRGHVW FRYHUDJH PDQGDWHG E\ .HQWXFN\ ODZ  7KHUH LV QRWKLQJ LQ WKLV VWDWXWRU\ VFKHPH WKDW ZRXOG OHDG RQH WR EHOLHYH WKDW WKH .HQWXFN\ OHJLVODWXUH LQWHQGHG WKDW DQ LQVXUHGjVUHFRYHU\XQGHUDQXQLQVXUHGPRWRULVWSROLF\ZRXOG EH DXWRPDWLFDOO\ FDSSHG DW  UHJDUGOHVV RI WKH SROLF\OLPLWVQHJRWLDWHGDQGSDLGIRUE\WKHLQVXUHG  $PHULFDQ DVVHUWV WKDW ZKHQ VXPPDU\ MXGJPHQW LV EDVHG XSRQ D GLVWULFW FRXUWjV LQWHUSUHWDWLRQ RI VWDWH ODZ WKLV FRXUW VKRXOG JLYH $PHULFDQXUJHVWKLVFRXUWWRIROORZGHFLVLRQVIURPYDULRXV FRQVLGHUDEOH ZHLJKW WR WKDW GHFLVLRQ 6HH HJ :ULJKW Y +ROEURRN    RWKHUMXULVGLFWLRQVWKDWKROGWKDWDQXQLQVXUHGPRWRULVWVWDWXWH )G   WK &LU   m>,@Q WKH DEVHQFH RI UHSRUWHG VWDWH DOORZVDQLQMXUHGSDUW\WRUHFRYHUWKHGLIIHUHQFHEHWZHHQWKH GHFLVLRQV RQ WKH SUHFLVH LVVXH LQYROYHG WKLV FRXUW    JLYHV FRQVLGHUDEOH WRUIHDVRUjVOLDELOLW\OLPLWVDQGWKHVWDWXWRU\PLQLPXP6HH HJ &RRN Y 3HGLJR  6:G    0R &W $SS ZHLJKW WR WKH GLVWULFW MXGJHjV LQWHUSUHWDWLRQ RI VWDWH ODZ $FFRUGLQJO\ LI

   m>:@HKROGWKDWDQLQMXUHGPRWRULVWPD\UHFRYHUXQGHU D IHGHUDO GLVWULFW MXGJH KDV UHDFKHG D SHUPLVVLEOH FRQFOXVLRQ XSRQ D

TXHVWLRQ RI ORFDO ODZ WKH &RXUW RI $SSHDOV VKRXOG QRW UHYHUVH HYHQ

WKRXJK LW PD\ WKLQN WKH ODZ VKRXOG EH RWKHUZLVHl LQWHUQDO TXRWDWLRQ KLVXQLQVXUHGPRWRULVWFRYHUDJHLIKLVLQMXU\LVFDXVHGE\DQ PDUNV DQG FLWDWLRQV RPLWWHG  XQGHULQVXUHG PRWRULVW  7KLV UHFRYHU\ LV OLPLWHG WR WKH 7KLV FRXUW IRUPHUO\ JDYH VRPH GHIHUHQFH WR WKH VWDWH ODZ GLIIHUHQFHEHWZHHQWKHWRUIHDVRUjVOLDELOLW\LQVXUDQFHDQGWKH LQWHUSUHWDWLRQV RI GLVWULFW FRXUWV VLWWLQJ LQ GLYHUVLW\ EXW WKH 6XSUHPH &RXUW

6HH 6DOYH 5HJLQD &ROOHJH PLQLPXP OLDELOLW\ UHTXLUHPHQWV XQGHU WKH 6DIHW\ 5HVSRQVLELOLW\/DZ† (PHU\Y6WDWH)DUP0XW KDV UXOHG WKDW VXFK GHIHUHQFH LV LQDSSURSULDWH

Y 5XVVHOO  86     m:H FRQFOXGH WKDW D FRXUW RI

DSSHDOV VKRXOG UHYLHZ GH QRYR D GLVWULFW FRXUW V GHWHUPLQDWLRQ RI VWDWH $XWR,QV&R 1:G  1HE   VDPH 1HDOVY ODZl   $PHULFDQ+RPH$VVXUDQFH 1R 1R $PHULFDQ+RPH$VVXUDQFH  &RY+XJKHVHWDO &RY+XJKHVHWDO

IXOOEHQHILWRIWKHLUEDUJDLQRQO\LIWKHWRUWIHDVRUFDUULHGQR 'LVFXVVLRQ OLDELOLW\LQVXUDQFHDWWKHWLPHRIWKHDFFLGHQW,IWKHWRUWIHDVRU FDUULHG LQVXUDQFH RI   RU HYHQ  7KH SDUWLHV GR QRW GLVSXWH WKDW WKH WRUWIHDVRUjV YHKLFOH DOWKRXJK WKH XQLQVXUHG PRWRULVW FRYHUDJH LV WULJJHUHG WKH ZKLFKVWUXFN0UV+XJKHVZDVDQmXQLQVXUHGPRWRUYHKLFOHl  +XJKHVHVj UHFRYHU\ ZRXOG EH FDSSHG E\ WKH  SXUVXDQWWR.\5HY6WDW†   DQGWKHWHUPVRI PLQLPXPOLDELOLW\FRYHUDJHUHTXLUHPHQWXQGHUWKH.HQWXFN\ WKH +XJKHVHVj SROLF\  LQ WKDW WKH WRUWIHDVRU PDLQWDLQHG 0RWRU9HKLFOH5HSDUDWLRQV$FW6XFKDUHVXOWLVSUREOHPDWLF OLDELOLW\ FRYHUDJH OHVV WKDQ WKH PLQLPXP OLPLWV PDQGDWHG :HILQGEDVHGRQWKHWHUPVRIWKHXQLQVXUHGPRWRULVWSROLF\ XQGHU .HQWXFN\ ODZ  7KH +XJKHVHV REMHFW WR WKH GLVWULFW WKDW WKH +XJKHVHV VKRXOG EH DEOH WR WDNH DGYDQWDJH RI WKH FRXUWjVLQWHUSUHWDWLRQRI.HQWXFN\ODZFRQFHUQLQJWKHVFRSH KLJKHUOLPLWVRIFRYHUDJHIRUZKLFKWKH\KDYHDIWHUDOOSDLG RIFRYHUDJHXQGHUWKHLUXQLQVXUHGPRWRULVWLQVXUDQFHSROLF\ WKHSUHPLXPV SXUFKDVHGIURP$PHULFDQ $PHULFDQ DUJXHV WKDW WKH .HQWXFN\ OHJLVODWXUH 7KH LVVXH UHODWLQJ WR WKH VFRSH RI FRYHUDJH XQGHU FRQWHPSODWHGMXVWVXFKDQXQIDLUUHVXOWZKHQLWHQDFWHG.\ $PHULFDQjVSROLF\ZLWKWKH+XJKHVDVDFNQRZOHGJHGE\WKH 5HY 6WDW †   VR DV WR SURYLGH XQGHULQVXUHG GLVWULFWFRXUWLVDTXHVWLRQRIILUVWLPSUHVVLRQXQGHU.HQWXFN\ PRWRULVWFRYHUDJHIRUPRWRULVWVLQYROYHGLQDFFLGHQWVZLWK ODZ  $EVHQW FRQWUROOLQJ SUHFHGHQW ZH PXVW XVH RXU EHVW WRUWIHDUVRUVZKRFDUULHGOHVVOLDELOLW\FRYHUDJHWKDQQHHGHGWR MXGJPHQW DV WR KRZ WKH >.HQWXFN\@ 6XSUHPH &RXUW ZRXOG FRPSHQVDWHWKHPIRUWKHLULQMXULHV%HFDXVHWKH+XJKHVHVGLG UXOHLIIDFHGZLWKWKHVDPHFDVHsLP:KLWH$JHQF\&RY QRW HOHFW WR SURFXUH WKH PRUH H[SDQVLYH XQGHULQVXUHG 1LVVDQ0RWRU&RUS)G WK&LU  7KH PRWRULVWVFRYHUDJH$PHULFDQFRQWHQGVWKDWWKH\DUHSURSHUO\ GLVWULFW FRXUW UHOLHG SULPDULO\ RQ WKH .HQWXFN\ 6XSUHPH OLPLWHG WR D  UHFRYHU\ SHU YHKLFOH XQGHU WKH &RXUWjVEDODQFLQJDSSURDFKDVLOOXVWUDWHGLQ3URJUHVVLYH1 FLUFXPVWDQFHVRIWKLVFDVH,Q5R\Y6WDWH)DUP0XW$XWR ,QV&RY&RUGHU6:G .\ WRDQVZHUWKH ,QV &R  )G     WK &LU    DSSO\LQJ FRYHUDJHLVVXHSUHVHQWHGLQWKLVFDVH7KHLQMXUHGWKLUGSDUW\ .HQWXFN\ODZ WKLVFRXUWVWDWHG LQ &RUGHU VRXJKW WR UHFRYHU WKH LQVXUHGjV SROLF\ OLPLWV RI >&@RYHUDJH ZKHUHE\ D SROLF\KROGHUjV RZQ LQVXUDQFH FRPSDQ\SURPLVHVWRSD\KLPIRUGDPDJHVFDXVHGE\D  YHKLFOHLQVXUHGIRUOHVVWKDQWKHVWDWXWRU\PLQLPXPRI .\ 5HY 6WDW †   SURYLGHV LQ SHUWLQHQW SDUW mWKH WHUP µXQLQVXUHG PRWRU YHKLFOHj VKDOO VXEMHFW WR WKH WHUPV DQG FRQGLWLRQV LVQRWWKHRQO\W\SHRImXQGHULQVXUHGl RI VXFK FRYHUDJH EH GHHPHG WR LQFOXGH    DQ LQVXUHG PRWRU YHKLFOH ZLWK FRYHUDJHDYDLODEOHLQ.HQWXFN\.\5HY6WDW  UHVSHFW WR ZKLFK WKH DPRXQWV SURYLGHG XQGHU WKH ERGLO\ LQMXU\ OLDELOLW\ FDSWLRQHGm8QGHULQVXUHGPRWRULVWFRYHUDJHlJLYHV ERQG RU LQVXUDQFH SROLF\ DSSOLFDEOH DW WKH WLPH RI WKH DFFLGHQW ZLWK WKH.HQWXFN\SROLF\KROGHUWKHRSWLRQRIEX\LQJFRYHUDJH UHVSHFW WR DQ\ SHUVRQ RU RUJDQL]DWLRQ OHJDOO\ UHVSRQVLEOH IRU WKH XVH RI WKDWREOLJDWHVWKHSROLF\KROGHUjVRZQFRPSDQ\WRPDNH VXFK PRWRU YHKLFOH DUH OHVV WKDQ WKH OLPLWV GHVFULEHG LQ .56   l SD\PHQW RQ DQ XQVDWLVILHG MXGJPHQW UHFRYHUHG E\ WKH SROLF\KROGHUDJDLQVWWKHRZQHURIDYHKLFOHWKDWPD\EH  7KH +XJKHVHVj SROLF\ GHILQHG mXQLQVXUHG PRWRU YHKLFOHl WR LQVXUHGIRUPRUHWKDQEXWWKDWLVQRW LQFOXGH D ODQG PRWRU YHKLFOH mWR ZKLFK D ERGLO\ LQMXU\ ERQG RU SROLF\ LQVXUHGIRUWKHIXOODPRXQWRIWKHMXGJPHQW&RYHUDJH DSSOLHV DW WKH WLPH RI WKH DFFLGHQW ,Q WKLV FDVH LWV OLPLW IRU ERGLO\ LQMXU\ SXUFKDVHGXQGHU.\5HY6WDW REOLJDWHVWKH OLDELOLW\ PXVW EH OHVV WKDQ WKH PLQLPXP OLPLW IRU ERGLO\ LQMXU\ OLDELOLW\ SROLF\KROGHUjVRZQLQVXUDQFHFDUULHUWRPDNHSD\PHQWRQ VSHFLILHG E\ WKH ILQDQFLDO UHVSRQVLELOLW\ ODZ RI WKH VWDWH LQ ZKLFK µ\RXU FRYHUHG DXWRj LV SULQFLSDOO\ JDUDJHGl  $PHULFDQ+RPH$VVXUDQFH 1R 1R $PHULFDQ+RPH$VVXUDQFH  &RY+XJKHVHWDO &RY+XJKHVHWDO

ZKLOHWKHLQVXUHUVRXJKWWROLPLWUHFRYHU\WRWKH YHKLFOHUHSUHVHQWLQJWKHGLIIHUHQFHEHWZHHQWKHWRUWIHDVRUjV PLQLPXPVWDWXWRU\DPRXQW7KHFRXUWUXOHG SROLF\ OLPLWV DQG .HQWXFN\jV PLQLPXP UHTXLUHG OLDELOLW\ FRYHUDJH $OWKRXJK&RUGHUPXVWEHDOORZHGWRUHFRYHUGDPDJHV XQGHUWKH>LQVXUHGjV@SROLF\VKHPD\UHFRYHURQO\XSWR 7KHGLVWULFWFRXUWjVUHOLDQFHRQ&RUGHUZDVHUURQHRXVIRU WKHPLQLPXPDPRXQWRIOLDELOLW\FRYHUDJHUHTXLUHGE\ WKH.HQWXFN\6XSUHPH&RXUWLQWKDWFDVHZDVEDODQFLQJWKH WKH095$7KH095$LVDVHOIFRQWDLQHG$FWDQGLWV LQWHUHVWVRIDQLQQRFHQWWKLUGSDUW\DQGDQLQVXUDQFHFRPSDQ\ SURYLVLRQV PXVW EH UHDG FRQVLVWHQWO\ 7KXV VLQFH WKH ,WLVFOHDUWRXVWKDWWKHFRQWUDFWXDOWHUPVLQ$PHULFDQjVSROLF\ SXEOLFSROLF\EHKLQGWKH$FWJRYHUQVWKHDYDLODELOLW\RI JRYHUQWKHUHVROXWLRQRIWKLVLVVXHEHWZHHQ$PHULFDQDQGWKH UHFRYHU\ LW DOVR PXVW JRYHUQ WKH DPRXQW UHFRYHUDEOH +XJKHVHVDQGWKHUHIRUHWKHFRXUWGLGQRWQHHGWRUHVRUWWRDQ .56   VHWV IRUWK WKH PLQLPXP VXPV 7KH HTXLWDEOHEDODQFLQJRIWKHSDUWLHVjLQWHUHVWV SXEOLFSROLF\H[SUHVVHGLQWKH$FWLVWKDWHYHU\YLFWLPRI D PRWRU YHKLFOH DFFLGHQW ZLOO EH DEOH WR UHFRYHU WKH 7KH PDWWHU IRU FRQVLGHUDWLRQ LQ WKLV FDVH LV D SXUHO\ VWDWXWRU\ PLQLPXP VXP WRZDUGV VDWLVIDFWLRQ RI DQ\ FRQWUDFWXDOLVVXHEHWZHHQWKHLQVXUHUDQGLWVLQVXUHGZKLFK MXGJPHQWREWDLQHG1RSXEOLFSROLF\ZRXOGEHDGYDQFHG VKRXOG QRW EH GLVWXUEHG XQGHU WKH JXLVH RI LQWHUSUHWDWLRQ E\HQIRUFLQJFRQWUDFWXDOWHUPVWKDWH[FHHGWKHUHTXLUHG m>7KH6XSUHPH&RXUWRI.HQWXFN\KDV@QRWHGRQVHYHUDOSDVW FRYHUDJH,QVRKROGLQJWKHFRPSHWLQJLQWHUHVWVRIWKH RFFDVLRQV WKDW LQ HQDFWLQJ .56  WKH *HQHUDO LQVXUDQFH FRPSDQ\ DQG WKH SXEOLF SROLF\ RI WKLV $VVHPEO\ GLG QRW SUHVXPH WR ZULWH DQ XQLQVXUHG PRWRULVW &RPPRQZHDOWKDUHHTXLWDEO\EDODQFHG SROLF\ EXW PHUHO\ JDYH D JHQHUDO RXWOLQH RI WKH FRYHUDJH ,QVXPPDU\ZKHUHORVVPXVWEHERUQHE\DQLQQRFHQW UHTXLUHGWKHOHJLVODWXUHUHFRJQL]LQJWKDWWKHOLPLWVDQGWHUPV WKLUGSDUW\RUE\DQLQVXUDQFHFRPSDQ\ZKLFKKDVZULWWHQ RIWKHVWDWXWHjVJHQHUDORXWOLQHRIUHTXLUHGFRYHUDJHZRXOGRI DSROLF\SXUVXDQWWRDFRPSXOVRU\LQVXUDQFHVWDWXWHDQG QHFHVVLW\ EH VSHFLILFDOO\ GHILQHG E\ UHDVRQDEOH µWHUPV DQG DFFHSWHGDSUHPLXPWKHUHIRULWVKRXOGEHWKHLQVXUDQFH FRQGLWLRQVjLQWKHYDULRXVLQVXUDQFHFRQWUDFWVl6WDWH)DUP FRPSDQ\WKDWEHDUVWKHORVVXSWRWKHPLQLPXPVWDWXWRU\ 0XW $XWR ,QV &R Y &KULVWLDQ  6:G   OLPLWV:KHWKHUDSDUWLFXODULQMXUHGWKLUGSDUW\KDVRUKDV .\   FLWDWLRQVRPLWWHG m,WLVDJHQHUDOO\KHOGUXOHWKDW QRW D SROLF\ RI XQLQVXUHG PRWRULVW RU XQGHULQVXUHG FOHDUSURYLVLRQVLQLQVXUDQFHFRQWUDFWVZLOOEHXSKHOGLIQRW PRWRULVWFRYHUDJHLVLQFRQVHTXHQWLDO2XUFRQFHUQKHUH YLRODWLYH RI SXEOLF SROLF\ RU VWDWXWHl  :LQGKDP Y LVZLWKWKHUHODWLRQVKLSEHWZHHQWKHLQMXUHGWKLUGSDUW\ &XQQLQJKDP 6:G .\&W$SS   WKH QHJOLJHQW GHIHQGDQW DQG WKH LQVXUDQFH FRPSDQ\ ZKLFKSURYLGHVLQGHPQLW\IRUWKHFODLP 8QGHUWKHWHUPVRILWVXQLQVXUHGPRWRULVWSROLF\$PHULFDQ SURPLVHG WR SURYLGH WKH HQXPHUDWHG FRYHUDJH IRU ,GDW mFRPSHQVDWRU\GDPDJHVZKLFKDQµLQVXUHGjLVOHJDOO\HQWLWOHG WRUHFRYHUIURPWKHRZQHURURSHUDWRURIDQµXQLQVXUHGPRWRU 7KHGLVWULFWFRXUWQRWHGWKDWDOWKRXJKWKHFRYHUDJHLVVXHLQ YHKLFOHjl:KHQWKH+XJKHVHVSXUFKDVHGDGGLWLRQDOFRYHUDJH &RUGHUZDVQRWSUHFLVHO\WKHVDPHDVWKHFDVHDWEDULWIDLUO\ IURP $PHULFDQ EH\RQG WKH PLQLPXP UHTXLUHG XQGHU H[SUHVVHG WKH .HQWXFN\ 6XSUHPH &RXUWjV LQWHUSUHWDWLRQ RI .HQWXFN\ ODZ IURP $PHULFDQ WKH\ UHDVRQDEO\ H[SHFWHG .HQWXFN\LQVXUDQFHODZ$FFRUGLQJO\WKHFRXUWDGRSWHGWKH EDVHG RQ WKH WHUPV RI WKH FRQWUDFW WR EH SURWHFWHG DJDLQVW EDODQFLQJ DSSURDFK LQ &RUGHU WR GHFODUH WKDW $PHULFDQjV XQLQVXUHGPRWRULVWVXSWRWKHDPRXQWIRUZKLFKWKH\SDLG PD[LPXP SRWHQWLDO OLDELOLW\ ZDV  RQ DQ\ VLQJOH )ROORZLQJWKHGLVWULFWFRXUWjVUXOLQJWKH+XJKHVHVUHFHLYHWKH

Reference

Status
Published