Royal & Sun Alliance Insurance Limited & Ors v Tughans (a firm)

Royal & Sun Alliance Insurance Limited & Ors v Tughans (a firm)

Permission to appeal was granted to RSA only on the issue of what constitutes an insured loss (ground 2), as it raises an arguable point of law of general public importance. Permission to appeal on all other grounds was refused for lack of realistic prospect of success or wider importance. Costs were apportioned 60% in favour of Tughans as the substantially successful party, with an interim payment ordered. The judgment also sets out a stricter approach to the resolution of consequential issues in the Commercial Court.

Parties
Claimants / Arbitration Respondents: Royal & Sun Alliance Insurance Limited & Others; Defendant / Arbitration Claimant: Tughans (a firm)
Jurisdiction
England and Wales
Judgment Date
09 November 2022
Procedural Posture
Arbitration Claim (consequential Judgment) / Post Judgment; Determination of Consequential Issues and Applications for Permission to Appeal
Outcome
Permission to appeal granted to RSA on ground 2 only; all other applications for permission to appeal refused; costs apportioned 60% in favour of Tughans; interim payment ordered.
Legal Topics
Consequential Orders, Permission to Appeal, Costs, Interpretation of Arbitration Awards, Professional Indemnity Insurance
Arbitration Commercial Law Insurance Law Consequential Orders Permission to Appeal Costs Interpretation of Arbitration Awards Professional Indemnity Insurance

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Parties

Royal & Sun Alliance Insurance Limited & Others

Claimants / Arbitration Respondents

Tughans (a firm)

Defendant / Arbitration Claimant

Procedural Posture

Arbitration Claim (consequential Judgment) / Post Judgment; Determination of Consequential Issues and Applications for Permission to Appeal

Legal Issues

  1. 1 Whether permission to appeal should be granted on various grounds under Arbitration Act 1996 sections 67, 68, and 69
  2. 2 Appropriate approach to resolving consequential issues post-judgment
  3. 3 Entitlement to costs and interim payment

Ratio Decidendi

Permission to appeal was granted to RSA only on the issue of what constitutes an insured loss (ground 2), as it raises an arguable point of law of general public importance. Permission to appeal on all other grounds was refused for lack of realistic prospect of success or wider importance. Costs were apportioned 60% in favour of Tughans as the substantially successful party, with an interim payment ordered. The judgment also sets out a stricter approach to the resolution of consequential issues in the Commercial Court.

Court Disposition

Permission to appeal granted to RSA on ground 2 only; all other applications for permission to appeal refused; costs apportioned 60% in favour of Tughans; interim payment ordered.

Orders

  • RSA to pay 60% of Tughans’ costs of the Arbitration Claim, subject to detailed assessment if not agreed.
  • RSA to pay £72,000 to Tughans by way of interim payment on account of costs within 14 days.