Standard Life Assurance Ltd v Oak Dedicated Ltd & Ors

Standard Life Assurance Ltd v Oak Dedicated Ltd & Ors

The words 'each and every claim and/or claimant' in the policy excess provision impose a per claimant excess, precluding aggregation of related claims by different claimants. Aon was negligent in arranging cover with ambiguous and non-standard wording that failed to clearly meet SLAC's requirements. The Part VII transfer was effective to vest rights of action in SLAL. There was no contributory negligence by SLAC and the claim was not time-barred.

Parties
Claimant / Part 20 Claimant: Standard Life Assurance Limited; Defendants: Oak Dedicated Limited and others; Part 20 Defendant: Aon Limited (formerly Aon Group Limited); Part 20 Defendant: Reynolds Porter Chamberlain (a firm)
Jurisdiction
England and Wales
Judgment Date
13 February 2008
Procedural Posture
Commercial Insurance Dispute (professional Indemnity) / Judgment After Stage 1 Trial on Preliminary Issues
Outcome
Judgment for Defendants (Insurers) on construction; Judgment for Claimant (SLAL) against Aon on negligence; SLAL entitled to pursue claim for damages against Aon; SLAL has title to sue; No reduction for contributory negligence; Claim not time-barred.
Legal Topics
Construction of Insurance Contracts, Aggregation of Claims, Broker's Duty of Care, Assignment of Rights Under Insurance Policies, Limitation of Actions
Insurance Law Professional Negligence Contract Law Construction of Insurance Contracts Aggregation of Claims Broker's Duty of Care Assignment of Rights Under Insurance Policies Limitation of Actions

Case Brief

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Parties

Standard Life Assurance Limited

Claimant / Part 20 Claimant

Oak Dedicated Limited and others

Defendants

Aon Limited (formerly Aon Group Limited)

Part 20 Defendant

Reynolds Porter Chamberlain (a firm)

Part 20 Defendant

Procedural Posture

Commercial Insurance Dispute (professional Indemnity) / Judgment After Stage 1 Trial on Preliminary Issues

Legal Issues

  1. 1 Whether the policy wording 'each and every claim and/or claimant' imposes a per claim or per claimant excess
  2. 2 Whether Aon was negligent in arranging cover with ambiguous wording
  3. 3 Whether SLAL has title to sue following the Part VII transfer

Ratio Decidendi

The words 'each and every claim and/or claimant' in the policy excess provision impose a per claimant excess, precluding aggregation of related claims by different claimants. Aon was negligent in arranging cover with ambiguous and non-standard wording that failed to clearly meet SLAC's requirements. The Part VII transfer was effective to vest rights of action in SLAL. There was no contributory negligence by SLAC and the claim was not time-barred.

Court Disposition

Judgment for Defendants (Insurers) on construction; Judgment for Claimant (SLAL) against Aon on negligence; SLAL entitled to pursue claim for damages against Aon; SLAL has title to sue; No reduction for contributory negligence; Claim not time-barred.

Orders

  • Declaration that the policy does not permit aggregation of related claims by different claimants for the purpose of the excess.
  • Declaration that Aon was negligent in arranging the 1998-2001 cover.