Opinion ID: 4315021
Heading Depth: 3
Heading Rank: 1

Heading: Utica Failed to Satisfy a Condition Precedent

Text: to Clearwater’s Responsibility to Indemnify the Goulds Settlement The parties agree that the authorization language imposes a condition precedent to a reinsurer’s liability for settlement payments. “A condition precedent is ‘an act or event, other than a lapse of time, which, unless the condition 361 F.3d 134, 139 (2d Cir. 2004); 4B N.Y. Prac., Com. Litig. in N.Y. State Courts § 74:38 (4th ed. 2017). Because the clauses in the TPF&C memoranda reserve final say to the reinsurers, these clauses are more appropriately referred to as “claims cooperation” clauses. See Ins. Co. of Afr., 1 Lloyd’s Rep. at 334 (noting inconsistency between a follow‐ the‐settlements clause and a “claims cooperation clause” because that the latter “requires that the insurers shall not make settlements without the approval of the reinsurers”); 7 New Appleman on Insurance Law Library Edition § 73.03(4) (Jeffrey E. Thomas et al. eds., 2017). 22 is excused, must occur before a duty to perform a promise in the agreement arises.’” Oppenheimer & Co. v. Oppenheim, Appel, Dixon & Co., 86 N.Y.2d 685, 690 (1995) (quoting Joseph M. Perillo & John D. Calamari, Contracts § 11‐2, at 438 (3d ed. 2013)); Restatement (Second) of Contracts § 224 (1981). Under New York law, the failure to satisfy a condition precedent “excuses performance by the other party whose performance is so conditioned.” Merritt Hill Vineyards Inc. v. Windy Heights Vineyard, Inc., 61 N.Y.2d 106, 113 (1984).