Manhattan Re-Insurance v. Safety National Casualty Corp.
Opinion
Lead Opinion
MEMORANDUM *
Because the parties are familiar with the pertinent facts, we do not state them here.
I
Safety National Casualty Corporation (SNCC) contends that its liability to Manhattan Reinsurance Company (MRC) should be reduced because MRC is currently receiving the benefit of an annuity originally purchased by its insured, Lavino Shipping Co. We disagree. The evidence before the district court showed that Lavino purchased the annuity on its own— without input or direction from MRC — to provide guaranteed funds to cover the compensation it owed to Frank Guthrie. There was no indication that Lavino or Crawford & Company acted as MRC’s agents. See Mottola v. R.L. Kautz & Co., 199 Cal.App.3d 98, 108 , 244 Cal.Rptr. 737 (1988) (being an agent for a specific purpose does not make one an agent for all purposes). Instead, MRC first obtained the annuity in satisfaction of Lavino’s debts when it settled as a creditor during Lavino’s bankruptcy proceedings. The transfer of this asset does not alter SNCC’s duty to reinsure those losses on the Guthrie claim that exceed its $750,000 attachment point. We affirm the district court’s summary judgment to MRC on this claim.