Firma CF-Trade SA v Newcastle Protection and Indemnity Association (the ‘Fanti’): QBD 1987

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 the parties in a winding up, and so could not be given effect.

Judges:

Mr Justice Staughton

Citations:

[1987] 2 Lloyd’s Rep 299

Statutes:

Third Parties (Rights Against Insurers) Act 1930 1(3)

Jurisdiction:

England and Wales

Citing:

Dicta AdoptedRe Allobrogia Steamship Corporation 1979
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 . .

Cited by:

CitedFreakley and Curzon Insurance Ltd v Centre Reinsurance International Company and Another; similar CA 11-Feb-2005
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 . .
Appeal fromSocony 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 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 . .
Appeal fromThe Fanti and The Padre Island CA 1989
. .
At First InstanceFirma C-Trade SA v Newcastle Protection and Indemnity Association (‘The FANTI’) HL 1991
. .
Lists of cited by and citing cases may be incomplete.

Insurance

Updated: 28 March 2022; Ref: scu.223313