The Fifth Circuit Court of Appeals reversed a district court’s judgment that found the an insurer had not failed to give prompt notice to a reinsurer when it first submitted the notice after a district court granted partial summary judgment and the Ninth Circuit denied a petition for interlocutory appeal regarding class certification in the underlying action, finding that the district court committed error by applying a subjective standard to the contractual requirement that the insurer give prompt notice of any claims that “in the opinion of [the insurer], may result in a Claim” and that an objective standard should be applied where “objective reality” and the insurer’s professional experience and familiarity with potential claims was implied.
