Cape Distribution Ltd v Cape Intermediate Holdings Plc [2016] EWHC 1786 (QB) (19 July 2016)

Cape Distribution Ltd v Cape Intermediate Holdings Plc [2016] EWHC 1786 (QB) (19 July 2016)

Section 7(3)(a) of the 1978 Act precludes CIH from claiming contribution against CDL where CDL is entitled to a contractual indemnity; in 'straddler' mesothelioma cases, Aviva is barred by the co-insurance/subrogation principle from pursuing CIH for indemnity in respect of the same loss for periods after 25 November 1964; limitation periods for CDL's indemnity claims run from when the liability is incurred or claim is made, subject to further factual determination.

Citation
[2016] EWHC 1786
Parties
Claimant/part 20 Defendant: Cape Distribution Limited; Defendant/part 20 Claimant: Cape Intermediate Holdings PLC
Jurisdiction
England and Wales
Judgment Date
19 July 2016
Procedural Posture
Commercial/contractual Indemnity and Contribution Claim / Post Preliminary Issues, Determination of Further Issues Prior to Main Trial
Outcome
Issues determined in favour of CDL/Aviva on the 1978 Act Issue; in favour of CIH on the Straddlers Issue regarding subrogation bar; limitation issue reserved for further determination.
Legal Topics
Contractual Indemnity, Statutory Contribution, Co Insurance and Subrogation, Limitation Periods, Mesothelioma and Asbestos Claims, Interpretation of Insurance Policies
Insurance Law Contract Law Tort Law Civil Procedure Contractual Indemnity Statutory Contribution Co Insurance and Subrogation Limitation Periods +2 more

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Parties

Cape Distribution Limited

Claimant/part 20 Defendant

Cape Intermediate Holdings PLC

Defendant/part 20 Claimant

Procedural Posture

Commercial/contractual Indemnity and Contribution Claim / Post Preliminary Issues, Determination of Further Issues Prior to Main Trial

Legal Issues

  1. 1 Effect of section 7(3)(a) Civil Liability (Contribution) Act 1978 on CIH's counterclaims
  2. 2 Whether Aviva is precluded from pursuing indemnities in 'straddler' asbestos exposure cases
  3. 3 When limitation periods start for CDL's contractual indemnity claims and whether any are time-barred

Ratio Decidendi

Section 7(3)(a) of the 1978 Act precludes CIH from claiming contribution against CDL where CDL is entitled to a contractual indemnity; in 'straddler' mesothelioma cases, Aviva is barred by the co-insurance/subrogation principle from pursuing CIH for indemnity in respect of the same loss for periods after 25 November 1964; limitation periods for CDL's indemnity claims run from when the liability is incurred or claim is made, subject to further factual determination.

Court Disposition

Issues determined in favour of CDL/Aviva on the 1978 Act Issue; in favour of CIH on the Straddlers Issue regarding subrogation bar; limitation issue reserved for further determination.

Orders

  • No consequential orders made at this stage; consequential orders to be addressed at further hearing on 26 July 2016.