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

Heading: Clearwater Must Indemnify Utica According

Text: to Utica’s Liability on the Umbrella Policies We hold as a matter of law that Clearwater is not obligated under either the memoranda or the certificates to follow Utica’s settlement with Goulds, but rather must indemnify Utica according to Utica’s proven liability on the umbrella policies. See Staring & Hansell, supra, § 20:6, at 534 (“In the absence of a following 30 settlements clause, . . . the reinsured has the burden of proving that the loss was specifically caused by a risk covered in the reinsurance contract.”); William Hoffman, On the Use and Abuse of Custom and Usage in Reinsurance Contracts, 33 Tort & Ins. L.J. 1, 70 (1997) (same). We accordingly vacate the district court’s grant of summary judgment for Utica and remand for trial to determine Clearwater’s actual liability to Utica under both the TPF&C memoranda and the Clearwater certificates.