Argo Systems FZE v Liberty Insurance (PTE) & Anor

Argo Systems FZE v Liberty Insurance (PTE) & Anor

Although the Claimant breached the 'hold harmless' warranty, the insurer (Liberty) is estopped from relying on this breach due to its conduct and delay in raising the point, and has also affirmed the policy, losing the right to avoid it for misrepresentation or non-disclosure. Damages for misrepresentation are not available where affirmation has occurred.

Parties
Claimant: Argo Systems FZE; First Defendant: Liberty Insurance (PTE); Second Defendant: London Special Risks Ltd
Jurisdiction
England and Wales
Judgment Date
21 February 2011
Procedural Posture
Commercial/marine Insurance / Judgment on Preliminary Issues After Trial
Outcome
Judgment for the Claimant on preliminary issues
Legal Topics
Breach of Warranty, Waiver, Estoppel, Affirmation, Misrepresentation, Damages for Misrepresentation
Insurance Law Marine Law Contract Law Breach of Warranty Waiver Estoppel Affirmation Misrepresentation +1 more

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Parties

Argo Systems FZE

Claimant

Liberty Insurance (PTE)

First Defendant

London Special Risks Ltd

Second Defendant

Procedural Posture

Commercial/marine Insurance / Judgment on Preliminary Issues After Trial

Legal Issues

  1. 1 Whether the Claimant was in breach of the warranty that no ‘hold harmless’ had been given to the tug or towers
  2. 2 Whether the First Defendant is estopped from relying on breach of the ‘hold harmless’ warranty
  3. 3 Whether the First Defendant has lost the right to avoid the policy for non-disclosure or misrepresentation

Ratio Decidendi

Although the Claimant breached the 'hold harmless' warranty, the insurer (Liberty) is estopped from relying on this breach due to its conduct and delay in raising the point, and has also affirmed the policy, losing the right to avoid it for misrepresentation or non-disclosure. Damages for misrepresentation are not available where affirmation has occurred.

Court Disposition

Judgment for the Claimant on preliminary issues

Orders

  • Declaration that Liberty is estopped from relying on breach of the 'hold harmless' warranty
  • Declaration that Liberty has affirmed the policy and cannot avoid it for misrepresentation or non-disclosure