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  5. 745 F.Supp. 974 (1990)
 

AMERICAN HOME ASSUR. CO. v. FREMONT INDEM. CO.

No. 88 Civ. 3394 (RPP).

745 F.Supp. 974 (1990)

AMERICAN HOME ASSURANCE COMPANY, The Insurance Company of the State of Pennsylvania, National Union Fire Insurance Company of Pittsburgh, Pa., Birmingham Fire Insurance Company of Pennsylvania, AIU Insurance Company, The New Hampshire Insurance Company, American International Insurance Company of Puerto Rico, Commerce and Industry Insurance Company, and Commerce and Industry Insurance Company of Canada, Plaintiffs, v. FREMONT INDEMNITY COMPANY, Defendant.

United States District Court, S.D. New York.

September 19, 1990.

Attorney(s) appearing for the Case

Cahill Gordon & Reindell, New York City by Edward P. Krugman, for plaintiffs.

Miller, Singer, Raives & Brandes, New York City by Lawrence I. Brandes, for defendant.

OPINION AND ORDER

ROBERT P. PATTERSON, Jr., District Judge.

This is an action by a reinsured ("AIG") against a reinsurance company ("Fremont") on two contracts of reinsurance, or "treaties." Defendant has moved for summary judgment pursuant to Fed.R.Civ.P. 56 rescinding the reinsurance treaties and dismissing the complaint. For the reasons set forth below, defendant's motion is denied.

BACKGROUND

1. First Blanket Treaty

In October...

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