Court Opinion

ID: 9752695
Source: CourtListenerOpinion
Date Created: 2023-08-28 18:29:09.985147+00
Date Added: 2024-06-11T07:27:21.096675
License: Public Domain

*45JOHNSON, Judge,
concurring:
I agree with Judge WIEAND in his conclusion that, on the facts of the instant case, the judgment should be affirmed. However, I cannot join in that part of his opinion which states that a reinsurer is in no respect liable to the original insured.
In the instant case, Appellant filed suit against, inter alia, International Fidelity Insurance Company (Fidelity), based on a public works contract. The record clearly indicates that despite Fidelity’s erroneous averment, Fidelity was solely a reinsurer of the contract between Appellant and H. Rupert & Sons, Inc. and not a co-surety. I therefore agree with J. WIEAND’S opinion that (1) Fidelity was solely a reinsurer of the original contract, (2) Appellant’s estoppel argument lacks merit and (3) the judgment should be affirmed, based on the facts of the case.
However, there are situations that I foresee where the original insured should be permitted to sue a reinsurer directly. An example would be where an agency relationship exists between the reinsured (the original insurer) and the reinsurer and the reinsurer has significant control over the actions of the original insurer. In such a case, the fact that the insurance company with control is labeled a “rein-surer” should not necessarily relieve it of liability on contractual actions arising out of certain conduct of the “rein-surer”, e.g., bad faith.
The instant facts do not lead me to the conclusion that Fidelity had, for example, any agency relationship with H. Rupert & Sons, Inc., nor does Appellant allege any fact that would lead me to the conclusion that Appellant’s suit should be permitted.
Therefore, although I agree with the result in the instant case, I cannot join that portion of Judge WIEAND’S opinion concerning the validity of the rule disallowing any action by an original insured against a reinsurer.