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AMERICAN HOME ASSURANCE COMPANY v. NAUSCH, HOGAN & MURRAY, INC.

1599, 1600, 602858/08

71 A.D.3d 550 (2010)

897 N.Y.S.2d 413

AMERICAN HOME ASSURANCE COMPANY et al., Respondents, v. NAUSCH, HOGAN & MURRAY, INC., et al., Appellants.

Appellate Division of the Supreme Court of New York, First Department.

Decided March 23, 2010.

Plaintiffs are ceding insurers. Defendants were their insurance brokers on certain contracts of reinsurance. In an arbitration related to this action that plaintiffs' reinsurer commenced, the arbitrators ordered the rescission of plaintiffs' contracts of reinsurance. After an 11-day hearing, the arbitrators found that broker Newman had tried to "slip one by" the reinsurer by failing to mention a fundamental change to the contracts...

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