KR and others v Royal and Sun Alliance Plc: CA 3 Nov 2006

The insurer appealed findings of liability under the 1930 Act. Claims had been made for damages for child abuse in a residential home, whom they insured. The home had become insolvent, and the claimants had pursued the insurer.
Held: The appeal was allowed in part. Liability had been found not directly on vicarious liability for the acts of the individual staff members, but rather on the negligence in the system of running the homes. The court had to look at each allegation of abuse to see whether the exemption in the policy applied: ‘If possible the exception clause should be given its natural meaning. The policy covers bodily injury to persons other than employees caused in the course of business. The exception focuses on injury or damage resulting from a deliberate act or omission of the insured. ‘ The insurer was not liable for the deliberate acts of abuse from the time after the policy successfully excluded such liability.


Times 08-Nov-2006, [2006] EWCA Civ 1454




Third Parties (Rights against Insurers) Act 1930 1


England and Wales


CitedKR and others v Bryn Alyn Community (Holdings) Ltd and Another CA 10-Jun-2003
The court considered an extension of the time for claiming damages for personal injuries after the claimants said they had been sexually abused as children in the care of the defendants.
Held: The test to be applied under section 14(2) was . .
CitedA v Hoare; H v Suffolk County Council, Secretary of State for Constitutional Affairs intervening; X and Y v London Borough of Wandsworth CA 12-Apr-2006
Each claimant sought damages for a criminal assault for which the defendant was said to be responsible. Each claim was to be out of the six year limitation period. In the first claim, the proposed defendant had since won a substantial sum from the . .
CitedStubbings v Webb and Another HL 10-Feb-1993
Sexual Assault is not an Act of Negligence
In claims for damages for child abuse at a children’s home made out of the six year time limit time were effectively time barred, with no discretion for the court to extend that limit. The damage occurred at the time when the child left the home. A . .
CitedWayne Tank and Pump Company Ltd v Employers Liability Assurance Corporation Ltd CA 1973
The court discussed the effect of an exception clause in an insurance policy: ‘The effect of an exception is to save the insurer from liability for a loss which but for the exception would be covered. The effect of the cover is not to impose on the . .
MentionedJ J Lloyd Instruments Limited v Northern Star Insurance Co Ltd; The Miss Jay Jay CA 1987
The insurers insured against an adverse sea but not against defective manufacture or design. Both were found to be proximate causes of the loss.
Held: The Court of Appeal upheld the first instance judge that the owners could claim under the . .
CitedST v North Yorkshire County Council CA 14-Jul-1998
The court considered the liability of the respondent for sexual assaults committed by an employee teacher when taking students on school trips.
Held: The Local Authority was not vicariously liable for sexual assault committed by employee . .
MentionedThe Aliza Glazial CA 2002
. .
CitedLennard’s Carrying Company Limited v Asiatic Petroleum Company Limited HL 1915
The House was asked as to when the acts of an individual became those of his employer under section 502 (‘any loss or damage happening without (the ship owner’s) actual fault or privity’).
Held: Viscount Haldane LC said: ‘It must be upon the . .
CitedHL Bolton (Engineering) Co Ltd v TJ Graham and Sons Ltd CA 1957
The landlord asserted that a tenancy should not be renewed and claimed to have held the freehold for more than 5 years.
Held: The Landlord had only become the reversioner to the lease after accepting a surrender of the head lease. The Act . .
CitedMeridian Global Funds Management Asia Ltd v Securities Commission PC 26-Jun-1995
(New Zealand) The New Zealand statute required a holder of specified investments to give notice of its holding to a regulator as soon as it became aware of its holding. Unbeknown to any others in the company apart from one colleague, its chief . .
CitedTesco Supermarkets Ltd v Nattrass HL 31-Mar-1971
Identification of Company’s Directing Mind
In a prosecution under the 1968 Act, the court discussed how to identify the directing mind and will of a company, and whether employees remained liable when proper instructions had been given to those in charge of a local store.
Held: ‘In the . .
CitedBeresford v Royal Insurance Co Ltd HL 1938
The forfeiture rule was to be applied in a case involving suicide. An insured may not recover under a policy of insurance in respect of loss intentionally caused by his own criminal or tortious act, however clearly the wording of the policy may . .
CitedEl Ajou v Dollar Land Holdings Ltd CA 2-Dec-1993
The court was asked whether, for the purposes of establishing a company’s liability under the knowing receipt head of constructive trust, the knowledge of one of its directors can be treated as having been the knowledge of the company.
Held: . .
Lists of cited by and citing cases may be incomplete.

Insurance, Vicarious Liability

Updated: 08 July 2022; Ref: scu.245841