The parties disputed the extent of cover under an insurance policy. The insured firm of accountants had failed to verify the existence of a substantial balance claimed by the company it audited. The policy ‘included as an Assured Firm but solely in respect of claims made against Grant Thornton International arising from claims made against a member firm of Grant Thornton International insured by the terms and conditions of this policy’. The question was whether GTI Italy was insured.
Held: The insured’s appeal succeeded. The clause ‘gives to GTI as an Assured Firm the protection of the second insuring clause, without any need to show that the claim against GT Italy is itself one which is insured under either of the two insuring clauses. This means that the phrase ‘insured by the terms and conditions of this policy’ do not relate to the earlier words ‘claims made’, but rather to the words ‘a member firm of Grant Thornton International’.
Judges:
Lord Hoffmann, Lord Scott of Foscote, Lord Walker of Gestingthorpe, Lord Mance, Lord Neuberger of Abbotsbury
Citations:
[2008] UKHL 18
Links:
Citing:
At first Instance – Brit Syndicates Ltd and others v Italaudit Spa and Another ComC 3-Mar-2006
The claimant insurers sought a declaration that they had successfully avoided an insurance policy.
Held: The court granted summary dismissal of the claim against the defendants. . .
Appeal from – Brit Syndicates Ltd (Brit Syndicate 2987 at Lloyd’s) and others v Grant Thornton International and Another CA 6-Dec-2006
. .
Cited – Bank of Nova Scotia v Hellenic Mutual War Risks Association (Bermuda) Ltd (The Good Luck) HL 1992
The effect of breach of an insurance warranty is automatic, rather than dependant on any acceptance or election.
Lord Goff of Chieveley said: ‘So it is laid down in section 33(3) that, subject to any express provision in the policy, the insurer . .
Cited – Thomson v Weems HL 1884
Where a basis of the contract clause makes the correctness or completeness of the insured’s disclosure into a warranty, a breach of that warranty has the effect that the insurance cover never attaches under the contract.
Lord Blackburn said: . .
Lists of cited by and citing cases may be incomplete.
Insurance
Updated: 14 July 2022; Ref: scu.266164