Opinion ID: 3045604
Heading Depth: 2
Heading Rank: 1

Heading: Swiss Re’s Status as an Intended Beneficiary 9

Text: We agree with Swiss Re that it is an intended beneficiary of the Agreement. Amwest asked Appellees to “indemnify and hold the Surety harmless,” defining “Surety” to include Amwest’s “reinsurers.” (App. at 493a ¶¶ 1-2.) That language clearly establishes that the parties intended to give Swiss Re the benefit of indemnification. See Guy v. Liederbach, 501 Pa. 47, 60, 459 A.2d 744, 751 (1983) (holding that plaintiff is a third party beneficiary when it is clear that promisee intends to give beneficiary the benefit of the promised performance); Commercial Ins. Co. of Newark v. Pacific-Peru Constr., 558 F.2d 948, 953-54 (9th Cir. 1977) (relying on language in indemnity agreement between surety and principal to treat reinsurer as intended beneficiary). Appellees make the remarkably unpersuasive argument that Amwest did not intend Swiss Re to benefit in the event that Amwest became insolvent. Contrary to their assertions, 9 The Pennsylvania Supreme Court has stated its preference for the term “intended beneficiary” rather than the generalized term “third party beneficiary,” which can refer to either an “intended beneficiary” or an “incidental beneficiary.” Chen v. Chen, 586 Pa. 297, 301 n.5, 893 A.2d 87, 89 n.5 (2006). 8 there is nothing in the Agreement indicating that the parties intended in any way to limit the circumstances in which a reinsurer could seek indemnification.10