Sphere Drake Insurance Plc and Another v Orion Insurance Company Plc: ComC 11 Feb 1999

ComC Multi-party run-off agreement made in 1975 to govern parties’ contributions towards run-off based on estimates of likely claims- asbestos-related claims led to final liabilities being vastly greater than estimates permitted. Orion, administration company under the agreement, sought substantial additional contributions from the other original parties to the 1975 agreement. First instance decision in favour of Orion for increased contribution from Sphere Drake; upheld Court of Appeal – 1975 agreement not intended to be final and binding. Finding dependent largely on evidence of one witness. Sphere-Drake pursuant to Tomlin order sought contribution from other original party (Baloise). New court of first instance held 1975 agreement final and binding. Witness now dead, evidence held to have been unreliable. Sphere Drake sued Orion. Issues: perjury – whether open to court to find deceased witness committed perjury – whether party on whose behalf witness called liable for perjury of witness (‘attribution issue’) – whether material – test of materiality – whether Sphere Drake precluded from action against Orion by own election to claim against Baloise.
Held: Deceased witness had not committed perjury. Allegations against Orion directors were unfounded. [Issues of law held not to be material to Judge’s findings, but considered.]
References: [1999] EWHC 286 (Comm)
Links: Bailii
Judges: Langley J
Jurisdiction: England and Wales
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Last Update: 22 September 2020; Ref: scu.201658