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SPHERE DRAKE INS. v. AMERICAN GENERAL LIFE INS.

No. 03-3750.

376 F.3d 664 (2004)

SPHERE DRAKE INSURANCE LIMITED, also known as Odyssey, formerly known as Odyssey Re (London) Limited, Plaintiff-Appellee, v. AMERICAN GENERAL LIFE INSURANCE COMPANY, formerly known as All American Life Insurance Company, Defendant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided July 16, 2004.

Attorney(s) appearing for the Case

James I. Rubin, Teresa Snider (argued), Butler, Rubin, Saltarelli & Boyd, Chicago, IL, for Plaintiff-Appellee.

Andrew S. Amer (argued), Simpson, Thacher & Bartlett, New York, NY, for Defendant-Appellant.

Before FLAUM, Chief Judge, and COFFEY and EVANS, Circuit Judges.

TERENCE T. EVANS, Circuit Judge.

This multimillion dollar dispute concerns the validity of a reinsurance contract between All American and Sphere Drake.1 Sphere Drake argues that its broker, Euro International Underwriting (EIU), lacked either actual or apparent authority to bind Sphere Drake to the reinsurance policy. The company contends that EIU had the authority to represent Sphere Drake only up to a certain dollar amount, a limit...

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