New York Law Journal "Reasonableness of Insurance Allocation Decisions Following Settlement&quo
A couple of lessons can be learned from this case. First, although New York courts endorse
a robust "follow the settlements" doctrine, including as to allocation decisions, it is not clear
that it applies in every reinsurance case, such as those lacking an express "follow the
settlements" clause. The First Department expressly reserved this question "to be resolved
in future proceedings."24 And second, although New York courts require deference to a
cedent's allocation decisions where the doctrine applies, it seems that substantial litigation
and discovery will need to take place in many, if not all cases, before a court will determine
whether that allocation was objectively reasonable.
