Caledonian North Sea Ltd v London Bridge Engineering Ltd and Others: HL 7 Feb 2002

Substantial personal injury claims had been settled following the Piper Alpha disaster. Where a contractual indemnity had been provided under a contract, and insurance had also been taken out, but the insurance had not been a contractual requirement, those giving the contractual indemnity must bear the primary liability. The insurer could claim subrogation to the indemnity claim in respect of the same loss.


Lord Bingham of Cornhill, Lord Mackay of Clashfern, Lord Nicholls of Birkenhead, Lord Hoffmann and Lord Scott of Foscote


Times 13-Feb-2002, [2002] UKHL 4, [2002] 1 LLR 553, [2002] Lloyds Rep IR 261, [2002] 1 All ER (Comm) 321, 2002 SLT 278, [2002] CLC 741, 2002 SC (HL) 117, [2002] BLR 139, 2002 SCLR 346, 2002 GWD 6-178


House of Lords, Bailii




CitedRandal v Cockran 17-Jun-1948
An insurer who has fully indemnified an insured against a loss covered by a contract of insurance between them may ordinarily enforce, in the insurer’s own name, any right of recourse available to the insured. . .
CitedMason v Sainsbury 19-Apr-1782
A claim was made upon insurance after a riot. The court asked asked ‘Who is first liable?’ This was not an issue of chronology but of establishing where the primary responsibility lay to make good the loss. The Act laid the primary responsibility . .
CitedLondon Assurance Company v SainsburyWood Immigration 28-Jun-1783
An insurance office having paid the assured the amount of the loss sustained by him in consequence of a demolishing by rioters, sued the hundredors under the stat. I G. 1, at. 2, e. 5, s. 6, in their own names. HeId by Lord Mansfield and Butler, J. . .
CitedYates v Whyte 1838
Plaintiff sued Defendants for damaging his ship by collision : Held, that Defendants were not entitled to deduct from the amount of damages to be paid by them, a sum of money paid to Plaintiff by insurers in respect of such damage. . .
CitedDickenson v Jardine CCP 1868
Goods had been insured for the voyage, but were jettisoned on it. The ship completed her voyage, and the owners of the goods became entitled to recover general average contribution from the other interests which had profited from the jettison. . .
CitedNorth British and Mercantile Insurance Company v London Liverpool and Globe Insurance Company 1877
In a dispute between insurers as to who should bear the loss, it was held that the loss should be borne by the wharfinger’s insurer because ‘the primary liability’ was that of the wharfinger. The customary strict responsibility of a wharfinger for . .
CitedCastellain v Preston 1883
The court emphasised the amplitude of the insurer’s right of subrogation which gave him ‘the advantage of every right of the assured, whether such right consists in contract, fulfilled or unfulfilled, or in remedy for tort capable of being insisted . .
CitedLord Napier and Ettrick and Another v Hunter and Others; Same v R F Kershaw Ltd HL 3-Mar-1993
Certain insureds sought recovery of a sum which was greater than the sum which had been paid to them by their insurers. The insureds had claimed first on the policies of insurance. Their claims had been met. The insureds then pursued an action in . .
CitedHadley v Baxendale Exc 23-Feb-1854
Contract Damages; What follows the Breach Naturaly
The plaintiffs had sent a part of their milling machinery for repair. The defendants contracted to carry it, but delayed in breach of contract. The plaintiffs claimed damages for the earnings lost through the delay. The defendants appealed, saying . .
CitedThe Iron and Steel Fencing and Buildings Co 1891
The particular use of the goods in question on which the pursuers’ claim for loss was based was a use which was not within the contemplation of the parties to the contract at the time it was made, and therefore the proper level of damages was that . .
CitedSickness and Accident Assurance Association v General Accident Assurance Corporation Limited OHCS 1892
An insurance company, after paying to a tramway company a sum due under a policy insuring against loss by accident, raised an action in its own name against another insurance company for contribution on the ground that it had insured the same risk. . .
CitedLarrinaga Steamship Co Ltd v The King HL 1944
The vessel, discharging at St. Nazaire, was ordered by charterers to return to Cardiff. Despite severely deteriorating weather conditions a Sea Transport Officer instructed the vessel to sail on completion of discharge to Quiberon Bay to join a . .
CitedScholefield Goodman and Sons Ltd v Zyngier PC 16-Aug-1985
(Victoria) By a mortgage executed in favour of the bank Mrs Zyngier covenanted to pay to the bank any sums which might be owed to it either by herself or by a named company, including any amounts for or in respect of any bills of exchange on which . .
CitedEsso Petroleum Co Ltd v Hall Russell and Co Ltd (The Esso Bernicia) HL 1989
Lord Goff of Chieveley said: ‘In normal cases, as for example under contracts of insurance, the insurer will on payment request the assured to sign a letter of subrogation, authorising the insurer to proceed in the name of the assured against any . .
CitedHotel Services Ltd v Hilton International Hotels (Uk) Ltd CA 15-Mar-2000
. .
Appeal fromCaledonian North Sea Ltd v London Bridge Engineering Ltd and Others IHCS 2000
Lord Rodger: ‘Subrogation works by giving the insurer who indemnifies the assured the right to raise proceedings in his name and, by the very nature of the circumstances in which it comes into play, the proceedings by the insurer must necessarily be . .

Cited by:

CitedCo-Operative Retail Services Limited and others v Taylor Young Partnership and others HL 25-Apr-2002
Whilst a substantial new building was being constructed, it was damaged by fire caused by the negligence of several contractors. The case concerned apportionment of liability.
Held: The appeal failed. The parties could by agreement vary the . .
Lists of cited by and citing cases may be incomplete.

Insurance, Damages

Updated: 05 June 2022; Ref: scu.167608