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 Adopted – Re 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:
Cited – Freakley 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 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
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 from – The Fanti and The Padre Island CA 1989
. .
At First Instance – Firma 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