HLB Kidsons (A Firm) v Lloyds Underwriters Subscribing to Lloyds Policy No 621/PKID00101 & Ors, Rev 1

HLB Kidsons (A Firm) v Lloyds Underwriters Subscribing to Lloyds Policy No 621/PKID00101 & Ors, Rev 1

Extension of cover for post-policy claims under GC4 is triggered only by written notification of circumstances given as soon as practicable after awareness during the policy period; the notifications by Kidsons were valid only in respect of procedural difficulties affecting implementation of Discounted Option Schemes, not the wider S@FI activities; late notifications (including the Tax Faculty Report) were invalid; composite policy principles allow attribution of awareness from managing partners or designated agents to all partners; Camerons was not Underwriters’ agent for notification.

Parties
Claimant: HLB Kidsons (A Firm); Defendants: Lloyds Underwriters subscribing to Lloyds Policy No 621/PKID00101 & Others; 6th Defendant: CMS Cameron McKenna; 7th Defendant: Miller Services Limited
Jurisdiction
England and Wales
Judgment Date
09 August 2007
Procedural Posture
Commercial Insurance Dispute / Judgment After Trial
Outcome
Claim for declaration of indemnity under the Policy in respect of all S@FI claims dismissed except for procedural difficulties affecting Discounted Option Schemes notified as soon as practicable; late notifications invalid.
Legal Topics
Claims Made Insurance Policies, Notification of Circumstances, Professional Indemnity, Policy Interpretation, Agency Attribution, Composite Insurance Policies
Insurance Law Contract Law Professional Negligence Claims Made Insurance Policies Notification of Circumstances Professional Indemnity Policy Interpretation Agency Attribution +1 more

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Parties

HLB Kidsons (A Firm)

Claimant

Lloyds Underwriters subscribing to Lloyds Policy No 621/PKID00101 & Others

Defendants

CMS Cameron McKenna

6th Defendant

Miller Services Limited

7th Defendant

Procedural Posture

Commercial Insurance Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether communications relied upon by Kidsons constituted valid and effective notification of circumstances under GC4 of the Policy
  2. 2 Whether claims arising in respect of S@FI fall within the scope of any such circumstance as may have been so notified
  3. 3 Proper construction of GC4 and its requirements

Ratio Decidendi

Extension of cover for post-policy claims under GC4 is triggered only by written notification of circumstances given as soon as practicable after awareness during the policy period; the notifications by Kidsons were valid only in respect of procedural difficulties affecting implementation of Discounted Option Schemes, not the wider S@FI activities; late notifications (including the Tax Faculty Report) were invalid; composite policy principles allow attribution of awareness from managing partners or designated agents to all partners; Camerons was not Underwriters’ agent for notification.

Court Disposition

Claim for declaration of indemnity under the Policy in respect of all S@FI claims dismissed except for procedural difficulties affecting Discounted Option Schemes notified as soon as practicable; late notifications invalid.

Orders

  • Declaration that only procedural difficulties affecting implementation of Discounted Option Schemes notified as soon as practicable are covered under the Policy
  • Claims arising from wider S@FI activities or late notifications (including Tax Faculty Report) are not covered