Clarke LJ discussed the process of construction: ‘in any process of construction it is appropriate to take the language of the particular clause as the starting point. It is, however, not in dispute that the words used must be considered in the context of the particular clause as a whole and that the clause must in turn be considered in the context of the policy as a whole, which must in its turn be set in its surrounding circumstances or factual matrix. Moreover, as Lord Hoffmann pointed out in the now well-known case of Investors Compensation Ltd v Hopkin and Sons (a firm), Alford v West Bromwich Building Society, Armitage v West Bromwich Building Society [1998] 1 All ER 98 at 114, [1998] 1 WLR 896 at 912-913 interpretation is the ascertainment of the meaning which the document would convey to a reasonable person having all the background knowledge which would reasonably have been available to the parties in the situation in which they were at the time of the contract, and the meaning of the document is what the parties using the relevant words against the relevant background would reasonably have been understood to mean.’
Judges:
Clarke LJ
Citations:
[1999] EWCA Civ 1884, [1999] EWCA Civ 1883, [1999] 2 All ER (Comm.) 722
Links:
Jurisdiction:
England and Wales
Insurance, Contract
Updated: 31 May 2022; Ref: scu.146799