H, being insured by the defendant company against liability to third parties, negligently injured C in a road accident. C subsequently brought an action against H for damages, but before he could obtain judgment, H was made bankrupt and the official receiver was appointed trustee in the bankruptcy. The trustee informed the defendant company in reply to a question that he did not intend to take any part in C’s action against H. H later purported, for an agreed sum much below the value of the claim to release the defendant company from its obligation under the policy to indemnify him in respect of any judgment obtained against him by C. Shortly afterwards C obtained judgment against H for damages for the personal injuries sustained by him. Later H was made bankrupt a second time and another trustee in bankruptcy was appointed.
Held: Where a person was injured or killed in a motor accident, for which a second (negligent and insolvent) motorist was liable and in respect of which that motorist was insured, that person was confined to his remedy in the negligent motorist’s bankruptcy; Any insurance monies went to swell the sum available to the general body of creditors.
Judges:
Tomlin J
Citations:
[1928] Ch 793
Cited by:
Cited – First National Tricity Finance Ltd v OT Computers Ltd; In re OT Computers Ltd (in administration) CA 25-May-2004
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 . .
Cited – Bradley v Eagle Star Insurance Co Ltd HL 1989
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 . .
Lists of cited by and citing cases may be incomplete.
Insurance
Updated: 30 April 2022; Ref: scu.198396