BP Plc v GE Frankona Reinsurance Ltd & Ors [2003] EWHC 344 (Comm) (27 February 2003)

BP Plc v GE Frankona Reinsurance Ltd & Ors [2003] EWHC 344 (Comm) (27 February 2003)

The terms of the Open Cover are contained in the Binder/Global Construction Insurance Policy, not the slip. A valid declaration requires an identifiable project and must be made within the Open Cover period. Declarations made to the leading underwriters are sufficient to bind all underwriters due to the policy's leading underwriter clause. The commencement of the project is not a precondition for a valid declaration. The sample declarations in question were validly made.

Citation
[2003] EWHC 344 (Comm)
Parties
Claimant/part 20 Defendant: BP p.l.c.; Defendants/part 20 Claimants: GE Frankona Reinsurance Limited and various Underwriters subscribing to Policy No. EL9801152
Jurisdiction
England and Wales
Judgment Date
27 February 2003
Procedural Posture
Commercial Court Preliminary Issues Trial / Judgment on Preliminary Issues
Outcome
Judgment for the claimant on preliminary issues.
Legal Topics
Construction All Risks Insurance, Interpretation of Insurance Contracts, Declarations Under Open Cover Policies, Facultative/obligatory Insurance Arrangements
Insurance Law Contract Law Construction All Risks Insurance Interpretation of Insurance Contracts Declarations Under Open Cover Policies Facultative/obligatory Insurance Arrangements

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Parties

BP p.l.c.

Claimant/part 20 Defendant

GE Frankona Reinsurance Limited and various Underwriters subscribing to Policy No. EL9801152

Defendants/part 20 Claimants

Procedural Posture

Commercial Court Preliminary Issues Trial / Judgment on Preliminary Issues

Legal Issues

  1. 1 What are the requirements for a valid declaration under the Open Cover?
  2. 2 Does the commencement date of a project affect the validity of a declaration?
  3. 3 Is it necessary for declarations to be made to each underwriter or only to the leading underwriters?

Ratio Decidendi

The terms of the Open Cover are contained in the Binder/Global Construction Insurance Policy, not the slip. A valid declaration requires an identifiable project and must be made within the Open Cover period. Declarations made to the leading underwriters are sufficient to bind all underwriters due to the policy's leading underwriter clause. The commencement of the project is not a precondition for a valid declaration. The sample declarations in question were validly made.

Court Disposition

Judgment for the claimant on preliminary issues.

Orders

  • Declarations that the contracts of insurance the subject of the 26 declarations under the Open Cover are valid and subsisting.
  • Defendants are obliged to indemnify BP and its co-insureds in respect of claims under those contracts.