OneBeacon America Insurance Co. v. Travelers Indemnity Company of Illinois
United States Court of Appeals, First Circuit
465 F.3d 38 (2006)
OneBeacon's general policy language with leasing company LAI appeared to define any permitted user of an LAI-owned vehicle as an insured, but affidavits, the parties' Agreement for Judgment, and LAI's lease agreements consistently showed coverage was intended only for lessees who lacked independent insurance, applied to LAI for OneBeacon coverage, and were approved; Capform never applied and instead carried its own Travelers policy, yet after a severe accident and $5 million settlement, Travelers sought $1,000,000 in contribution from OneBeacon based on the policy's literal language.
Whether a written contract may be reformed if its language does not reflect the true intent of the parties in making the agreement.