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Tesco Stores Ltd v Constable and others: Comc 14 Sep 2007

The defendants provided insurance for the claimant to construct a train tunnel over which the claimant would build a supermarket. The tunnel collapsed, and the railway operator claimed for loss of revenues. The insurers denied responsibility saying the loss was purely economic, and not covered by the policy.
Held: ‘since none of the loss for which Chiltern is to be compensated under the Deed is loss for which Chiltern would be entitled to be compensated in tort, Tesco is not entitled to the indemnity it seeks from the defendants. ‘

Judges:

Field J

Citations:

[2007] EWHC 2088 (Comm)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

CitedJames Longley and Company Ltd v Forest Giles Ltd CA 18-Jul-2001
The claimant sought an indemnity from his insurers under the Public Liability Section of a standard Builders Contractors Policy. A sub-contractor who had spent money rectifying a defectively laid floor and who had been sued to judgment in contract . .
CitedM/S Aswan Engineering Establishment Co Ltd v Iron Trades Mutual Insurance Co Ltd 1989
The court held in respect of a third party (legal and contractual liability) policy that the words ‘liable at law’ on their ordinary meaning meant ‘legal liability’ and not merely liable at common law, as contended by the insurers. A third party . .
CitedBartoline Limited v Royal Sun Alliance plc 2007
The claimant sought an indemnity under the Public Liability Section of a Combined Policy for: (i) expense incurred by the Environment Agency under section 161 of the Water Resources Act 1991 cleaning up water courses of pollutants after a fire on . .
CitedTioxide Europe Ltd v CGU International Plc and others CA 20-Jul-2005
The court considered how an insurance contract should be construed. Langley J said: ‘The general principle is that the proper construction is to be determined by the ordinary and natural meaning of the words used in the contractual and commercial . .
CitedInvestors Compensation Scheme Ltd v West Bromwich Building Society HL 19-Jun-1997
Account taken of circumstances wihout ambiguity
The respondent gave advice on home income plans. The individual claimants had assigned their initial claims to the scheme, but later sought also to have their mortgages in favour of the respondent set aside.
Held: Investors having once . .
CitedJames Budgett Sugars Ltd v Norwich Union Insurance Ltd ComC 15-May-2002
The insured sold contaminated sugar to a manufacturer of mincemeat so as to render it unmerchantable, the contamination was only discovered after the mincemeat had been sold on to end users.
Held: Physical damage may be caused by the mere fact . .

Cited by:

CitedTesco Stores Ltd v Constable and others CA 16-Apr-2008
Tesco voluntarily agreed to indemnify a third party for economic loss. When that third party claimed under the indemnity for economic losses arising out of damage to property of another, Tesco sought to claim under its own public liability insurance . .
Lists of cited by and citing cases may be incomplete.

Insurance, Construction

Updated: 12 December 2022; Ref: scu.259326

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