Successful Lloyds names were entitled to enforce their claims in the normal time sequence. The transfer of the rights of the insured against the insurer under section 1(1) the 1930 Act takes place on the event of insolvency, even if the insured’s liability to the third party has not yet been established. In handling claims, … Continue reading Cox v Bankside Members Agency Ltd and Others: CA 16 May 1995
It was a necessary part of the system of statutory transfers of insurance obligations under the Act, that the rights should be transferred before exhaustion of any policy excess, and notwithstanding the insolvency. The rights (inchoate at this stage) are transferred on insolvency even where there is an, as yet unreached, excess in the policy … Continue reading Centre Reinsurance International Co and Another v Curzon Insurance Ltd: ChD 12 Feb 2004
Solicitor firms had been made bankrupt leaving a shortfall after thefts from client accounts of over 12 million pounds. The thief had diappeared, and the other partners were now discharged form bankruptcy. The Law Society accepted that it could not proceed to claim against the discharged bankrupts, but now sought recovery from their insurers. Held: … Continue reading Law Society of England and Wales and others v Shah and others: ChD 30 Nov 2007
The court considered the effect, on the insolvency of the insured, of ‘pay to be paid’ conditions in contracts of insurance. It was asked to order the winding-up of a foreign registered company. The company had to own assets within the jurisdiction of the English court which could be realised in a winding-up for the … Continue reading Re Allobrogia Steamship Corporation: 1979
Claims were made for personal injury caused by asbestos. The re-insurers sought declaratory relief against the head insurers, and the administrators of the insolvent company. The administrators sought declarations in turn. Curzon insured the company for ultimate net loss, and then had re-insurance with Centre Reinsurance. Ultimate net loss meant all sums paid out less … Continue reading Freakley and Curzon Insurance Ltd v Centre Reinsurance International Company and Another; similar: CA 11 Feb 2005
The company had gone into liquidation. They had sold consumer policies as extended warranties on behalf of the claimant. The company had insured its own joint liability under the contracts, and the claimant sought information from the company’s administrators to assist it identifying who might else be liable. Held: The claimant could rely upon the … Continue reading First National Tricity Finance Ltd v OT Computers Ltd; In re OT Computers Ltd (in administration): CA 25 May 2004
The court considered appeals from conflicting interpretations of the effect of s1(3) of the 1930 Act on pay to be paid clauses in the event of the insolvency of the insured. Held: The condition did not purport to avoid the contract or to alter the rights of the parties under the contract in the event … Continue reading Socony Mobil Oil Co Inc v West of England Ship Owners Mutual Insurance Association Ltd (Padri Island) (No 2); Firma CF-Trade SA v Similar (Fanti): CA 30 Nov 1989
