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
The 1930 Act creates a statutory assignment of any rights of action in a case where the assured has become bankrupt or been wound up, the party to whom the benefit of a right of action under the liability insurance contract has been transferred may only operate that right in accordance with an arbitration agreement … Continue reading The Padre Island: 1984
The court considered an extension of the time for claiming damages for personal injuries after the claimants said they had been sexually abused as children in the care of the defendants. Held: The test to be applied under section 14(2) was ‘partly subjective’and ‘section 14(2) was designed principally to provide for cases of late diagnosis … Continue reading KR and others v Bryn Alyn Community (Holdings) Ltd and Another: CA 10 Jun 2003
The plaintiffs underwrote a film. The excesses for which they were liable were insured. The plaintiffs came to claim under the insurance, and Lloyds sought to intervene. The plaintiffs obtained judgement against the defendants by default. It later appeared that the sum for which judgement was entered had been claimed in error. They later sought … Continue reading Crystal Eye Management (Pty) Limited v Entertainment Guarantees Limited and Broad: CA 15 Jan 1997
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
A contract of insurance provided an indemnity for ‘all sums which the insured shall become legally liable to pay as compensation in respect of loss of property’. The claim was by the Post Office against a contractor, Potters, for damaging one of their cables which in consequence the Post Office had to repair. Before the … Continue reading Post Office v Norwich Union Fire Insurance Society Ltd: CA 1967
The claimants sought to claim for personal injuries against the defendant company, now in administration, and their insurers using the 1930 Act. The insurers said they were not liable to indemnify the company. The parties disputed the standing of an agreement with the third party manufacturers to settle the claim. Held: Despite any unwelcome result, … Continue reading Horwood and Others v Land of Leather Ltd and Others: ComC 18 Mar 2010
Judges: Mr Justice Wyn Williams Citations: [2010] EWHC 26 (QB), [2010] Lloyd’s Rep IR 309 Links: Bailii Statutes: Third Parties (Rights Against Insurers) Act 1930 Jurisdiction: England and Wales Insurance, Legal Professions Updated: 15 August 2022; Ref: scu.393399
Legal expenses insurance was purchased by a Miss Nicholson who ran a Natural Health Clinic in Clerkenwell. The insurance was called an ‘Office or Surgery Policy’ and section 7, headed ‘Legal Expenses’, provided that the insurers would pay the insured’s legal costs incurred in relation to claims against her for (inter alia) negligence or for … Continue reading Tarbuck v Avon Insurance Plc: ChD 2002
The claimant investors said that their financial adviser, the defendant insolvent company, had given them negligent advice. The action was brought as a preliminary to claiming against the defendant’s insurers under the 1930 Act, in the way made necessary by the Post Office and Bradley cases. Limitation defences were deployed to strike the action out. … Continue reading Financial Services Compensation Scheme Ltd v Larnell (Insurances) Ltd: CA 29 Nov 2005
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
The insurer appealed findings of liability under the 1930 Act. Claims had been made for damages for child abuse in a residential home, whom they insured. The home had become insolvent, and the claimants had pursued the insurer. Held: The appeal was allowed in part. Liability had been found not directly on vicarious liability for … Continue reading KR and others v Royal and Sun Alliance Plc: CA 3 Nov 2006
Judges: Simon J Citations: [2006] EWHC 48 (QB) Links: Bailii Statutes: Third Parties (Rights against Insurers) Act 1930 1 Jurisdiction: England and Wales Insurance Updated: 05 July 2022; Ref: scu.238696
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
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
Judges: Edwards-Stuart J Citations: [2010] EWHC 2448 (TCC), [2011] BLR 136, 133 Con LR 181 Links: Bailii Statutes: Third Parties (Rights Against Insurers) Act 1930 Jurisdiction: England and Wales Insurance, Arbitration, Construction Updated: 13 June 2022; Ref: scu.424993
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
Judges: Lord Drummond Young Citations: [2003] ScotCS 160, Times 28-Jun-2003 Links: Bailii, ScotC Statutes: Third Parties (Rights against Insurers) Act 1930, Policyholders Protection Act 1975 6 Citing: Cited – Pinner v Everett HL 1969 The House was asked whether or not a person was ‘driving or attempting to drive’ a motor vehicle when he had … Continue reading Aitken v Financial Services Compensation Scheme Limited: SCS 30 May 2003
The owners of the ‘MERCANDIAN CONTINENT’ had obtained judgment in earlier High Court proceedings against a Trinidadian shipyard for damage caused by negligent repair work. Jurisdiction in the earlier proceedings had been founded on an agreed submission to the jurisdiction of the English court. The yard’s liability insurers appointed solicitors to conduct the defence on … Continue reading K/S Merc-Scandia XXXXII v Underwriters to Lloyd’s Policy 25T 1054 and Others: CA 31 Jul 2001
The Insurers had avoided a policy after a claim had been brought, and the insured had produced a fraudulent document. Having won their case, the applicants sought to enforce the award against the insurers. The insurers were held not to be excused under the policy. The duty of good faith applied on matters up to … Continue reading K/S Merc-Scandia XXXXII v Underwriters to Lloyd’S Policy 25T 1054 87 and Others: QBD 20 Jul 2000
The victim of an unlawful act of a driver off-road sought damages from another driver and his insurers. The insurers refused to pay. Held: There is a balance to be found between the statutory purpose of compulsory motor insurance and the principal that a man should not benefit from his own wrongful act. The victim … Continue reading Churchill Insurance v Charlton: CA 2 Feb 2001
Judges: Mr Justice Saville Citations: [1987] 2 Lloyd’s Rep 529 Statutes: Third Parties (Rights Against Insurers) Act 1930 1(3) Jurisdiction: England and Wales Cited by: Appeal from – 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 … Continue reading Socony Mobil Oil Co Inc and others v West of England Ship Owners Mutual Insurance Association Ltd (the “Padre Island”) (No 2): 1987
A petition to wind up a one-ship Panamanian company was brought by a claimant cargo-owner who had ‘an unliquidated claim against the company for breach of [a] contract of carriage in respect of the shortages and for damages based on [the vessel] being unseaworthy’ The court was asked whether jurisdiction existed to wind up a … Continue reading In re Compania Merabello San Nicholas SA: ChD 1973
Mrs Bradley was employed by Dart Mill several times from 1933 and 1970 and acquired byssinosis from inhaling cotton dust. The company was wound up in 1975 and dissolved in 1976. In 1984 she applied to the court for pre-action disclosure under section 33(2) of the Supreme Court Act 1981 and RSC Ord. 24 rule … Continue reading Bradley v Eagle Star Insurance Co Ltd: HL 1989
Insurers declined to represent an insured facing a claim for damages for secondary liability for asbestos injury. The insured losing by default, the insurers then sought to be joined to defend the action, but still showed no good defence and were refused. Held: Where an underwriter could demonstrate that there was a defence which carried … Continue reading Rees and Another v Mabco (102) Ltd: CA 11 Dec 1998
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
The House was asked as to the effect of section 1(3) of the 1930 Act on policies including ‘pay or be paid’ clauses. Held: The central question was whether the condition of prior payment was rendered of no effect by section 1(3) of the Act of 1930. It is well established that an indemnity is … Continue reading Socony Mobil Oil Co Inc and others v West of England Ship Owners Mutual Insurance Association Ltd (Padri Island) (No 2); Firma CF-Trade SA v Similar (The ‘Fant’): HL 14 Jun 1990
The claimant sought leave to bring proceedings for professional negligence. As a footballer he had been injured, ending his career. He said that the defendant had been engaged, inter alia, to arrange insurance, but that they had failed to do so. The defendant company was in administration. Judges: John Martin QC Citations: [2012] EWHC 3266 … Continue reading Gaardsoe v Optimal Wealth Management: ChD 28 Feb 2012
The court considered the effect of section 1(3) on a ‘pay to be paid’ clause in a re-insurance contract. Held: If, as a matter of construction of the membership rules, the condition survived the making of a winding-up order – which he thought it did not) the condition sought directly to alter the rights of … Continue reading Firma CF-Trade SA v Newcastle Protection and Indemnity Association (the ‘Fanti’): QBD 1987
Standing to Claim under A1P1 ECHR The appellants had written employers’ liability insurance policies. They appealed against rejection of their challenge to the 2009 Act which provided that asymptomatic pleural plaques, pleural thickening and asbestosis should constitute actionable harm for the purposes of an action of damages for personal injury. Held: The insurers’ appeals failed. … Continue reading AXA General Insurance Ltd and Others v Lord Advocate and Others: SC 12 Oct 2011
Judges: Sara Cockerill QC Citations: [2017] EWHC 391 (Comm) Links: Bailii Statutes: Third Parties (Rights Against Insurers) Act 1930 Jurisdiction: England and Wales Contract Updated: 04 February 2022; Ref: scu.578055
A person requesting third party information under the Act, must first establish a claim sufficient to justify the right claimed. The third party claimant’s right against the insured arose at the time when the claimant suffered a loss but that the right of the insured to sue his insurer in respect of the liability he … Continue reading Woolwich Building Society v Taylor and Another: ChD 17 May 1994
T and N had exposure to asbestosis claims; these claims were insured by Lloyd’s but on terms that if payments were to be made, T and N should make certain reimbursements to Lloyd’s. T and N then insured with a captive company known as Curzon their liability to make such reimbursements. Lloyd’s called on T … Continue reading T and N Limited, Associated Companies of T and N Ltd (In Administration) v Royal and Sun Alliance Plc, and others: ChD 9 May 2003
References: [1987] 2 Lloyd’s Rep 529 Coram: Mr Justice Saville Ratio: Statutes: Third Parties (Rights Against Insurers) Act 1930 1(3) This case is cited by: Appeal from – Socony Mobil Oil Co Inc and others -v- West of England Ship Owners Mutual Insurance Association Ltd (the ‘Padri Island’) (No 2); Firma CF-Trade S.A -v- Newcastle … Continue reading Socony Mobil Oil Co Inc and others v West of England Ship Owners Mutual Insurance Association Ltd (the ‘Padre Island’) (No 2): 1987
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The court took a strict view of a vehicle owner’s potential liability to injured third parties.
Held: A person who suffered injury by reason of a breach of s35 could maintain an action in damages for that breach: ‘The Road Traffic Act, 1930, . .
