P’s methanol plant had been constructed with the use of know-how and services supplied by D. Following completion the plant exploded. The plaintiff sued D for negligence and breach of contract. The plaintiff had undertaken to indemnify D against loss to the plant and to cause D to be named as co-insured in all insurances effected in respect of the plant. D contended that it had a complete defence to the claim because it was entitled to be insured against it. In that context the question arose whether or not, following completion of the plant, D had an insurable interest in the plant itself.
Held: It did not. Whilst D had an insurable interest in the plant under construction, because it might lose the opportunity to work on it and earn remuneration if it were destroyed, after completion its only interest was in damage or destruction to the plant caused by D’s own breach of contract or duty of care and that could be insured only by liability insurance not insurance on the property or structure itself.
Judges:
Stuart-Smith LJ
Citations:
[1991] 1 Lloyds Rep 387
Jurisdiction:
England and Wales
Citing:
See Also – Deepak Fertilisers and Petrochemicals Corporation v ICI Chemicals and Polymers Ltd and Another ComC 30-Sep-1997
Trial of preliminary issue – Negligent Misrepresentation – Breach of Collateral Warranties – Breach of duty of care – Breach of contract (Davy Mckee only). . .
Cited by:
Cited – Feasey v Sun Life Assurance Company of Canada and Another: Steamship Mutual Underwriting Association (Bermuda) Ltd v Feasey ComC 17-May-2002
The fact that there was more than one insurance policy in place for the same interest would not preclude a claim under one of them. A mutual underwriting group insured members against personal injury and so forth through ‘lineslip’ policies. The . .
See Also – Deepak Fertilisers and Petrochemicals Corporation v ICI Chemicals and Polymers Ltd and Another ComC 30-Sep-1997
Trial of preliminary issue – Negligent Misrepresentation – Breach of Collateral Warranties – Breach of duty of care – Breach of contract (Davy Mckee only). . .
Cited – Six Continents Hotels Inc v Event Hotels Gmbh QBD 21-Sep-2006
The claimant had licensed the defendant to use its trademarks in connection with the naming of their hotels in Germany. The defendants failed to pay their fees as agreed, the claimants terminated the license and now sought payment under the . .
Lists of cited by and citing cases may be incomplete.
Insurance
Updated: 31 July 2022; Ref: scu.184483