Case Details

William Francis Rendall v. Combined Insurance Co. of America (HC)

[2005] EWHC 678 (Comm)

Colin Edelman QC and Colin Wynter appeared for London reinsurers in their claim for a declaration of non-liability with regard to the losses arising from the deaths of 176 employees of Aon Corporation, who perished whilst fleeing the South Tower of the WTC complex on 11 September 2001. The employees all benefited from insurance, provided by a US based insurer, and which included cover with regard to acts of terrorism. The US insurer reinsured with the London market only a part of its risk, those parts relating to "business travel"; its liability with regard to terrorism hazards was not reinsured. Following the tragic events of 11 September, the families of the deceased were all indemnified by the US insurer, which was liable to do so under the terrorism section of the insurance. The US insurer then sought to recover from London reinsurers on the basis that the loss represented by the deceased employees was also covered under the business travel section of the insurance, which was reinsured by the London market. The question for the Commercial Court, applying the law of the US state of Illinois, was whether or not the deceased employees were, at the time of their death, each on an "authorised business trip", as defined in the underlying insurance. The Court (Cresswell J.) ruled that they were not.