Midland Mainline Ltd & Ors v Eagle Star Insurance Company Ltd [2004] EWCA Civ 1042 (28 July 2004)

Midland Mainline Ltd & Ors v Eagle Star Insurance Company Ltd [2004] EWCA Civ 1042 (28 July 2004)

Wear and tear (RCF) was a proximate cause of the claimants' losses, either as the dominant or as one of two effective proximate causes. The policy's general exclusion for wear and tear applied to the denial of access extension, barring the claim for business interruption losses resulting from the emergency speed restrictions imposed after the Hatfield derailment.

Citation
[2004] EWCA Civ 1042
Parties
Claimant/respondent: Midland Mainline Limited; Claimant/respondent: Central Trains Limited; Claimant/respondent: Gatwick Express Railway Company Limited; Claimant/respondent: ScotRail Railways Limited; Claimant/respondent: Silverlink Train Services Limited; Defendant/appellant: Eagle Star Insurance Company Limited
Jurisdiction
England and Wales
Judgment Date
28 July 2004
Procedural Posture
Appeal / Court of Appeal (civil Division) Judgment on Appeal From Commercial Court
Outcome
Appeal allowed; claim barred by policy exclusion.
Legal Topics
Business Interruption Insurance, Policy Exclusions, Proximate Cause, Denial of Access Extension
Insurance Law Commercial Law Business Interruption Insurance Policy Exclusions Proximate Cause Denial of Access Extension

Case Brief

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Parties

Midland Mainline Limited

Claimant/respondent

Central Trains Limited

Claimant/respondent

Gatwick Express Railway Company Limited

Claimant/respondent

ScotRail Railways Limited

Claimant/respondent

Silverlink Train Services Limited

Claimant/respondent

Eagle Star Insurance Company Limited

Defendant/appellant

Procedural Posture

Appeal / Court of Appeal (civil Division) Judgment on Appeal From Commercial Court

Legal Issues

  1. 1 Whether wear and tear (RCF) was a proximate cause of the claimants' business interruption losses under the insurance policy
  2. 2 Whether the policy's general exclusion for wear and tear applied to the denial of access extension

Ratio Decidendi

Wear and tear (RCF) was a proximate cause of the claimants' losses, either as the dominant or as one of two effective proximate causes. The policy's general exclusion for wear and tear applied to the denial of access extension, barring the claim for business interruption losses resulting from the emergency speed restrictions imposed after the Hatfield derailment.

Court Disposition

Appeal allowed; claim barred by policy exclusion.

Orders

  • Eagle Star's appeal allowed; claimants not entitled to indemnity under the policy for losses resulting from wear and tear (RCF)