Phillips v Syndicate 992 Gunner & Ors [2003] EWHC 1084 (QB) (14 May 2003)

Phillips v Syndicate 992 Gunner & Ors [2003] EWHC 1084 (QB) (14 May 2003)

The insurer is liable to indemnify the insured in full for the liability arising from the material contribution to mesothelioma during its period of cover, as the 'rateable proportion' clause does not apply to successive policies and there is no basis in custom, practice, or business efficacy to imply a term limiting liability to a proportionate share.

Citation
[2003] EWHC 1084
Parties
Claimant: Sylvia Phillips (Widow & Executrix of the Estate of Arthur Phillips, Deceased); Defendants: Syndicate 992 Gunner and Others
Jurisdiction
England and Wales
Judgment Date
14 May 2003
Procedural Posture
Civil Insurance Indemnity Claim / Judgment After Trial
Outcome
Judgment for the Claimant
Legal Topics
Employers' Liability, Indemnity Under Insurance Contracts, Mesothelioma Claims, Third Parties (rights Against Insurers) Act 1930, Interpretation of Insurance Policy Terms
Insurance Law Tort Law Employers' Liability Indemnity Under Insurance Contracts Mesothelioma Claims Third Parties (rights Against Insurers) Act 1930 Interpretation of Insurance Policy Terms

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Parties

Sylvia Phillips (Widow & Executrix of the Estate of Arthur Phillips, Deceased)

Claimant

Syndicate 992 Gunner and Others

Defendants

Procedural Posture

Civil Insurance Indemnity Claim / Judgment After Trial

Legal Issues

  1. 1 Whether the insurer is liable for the full judgment sum or only a proportionate part corresponding to its period of cover under an employer's liability policy for mesothelioma contracted due to asbestos exposure.
  2. 2 Whether a 'rateable proportion' clause in the policy applies to successive, rather than concurrent, insurance policies.
  3. 3 Whether custom, practice, or business efficacy requires implication of a term limiting liability to a proportionate share.

Ratio Decidendi

The insurer is liable to indemnify the insured in full for the liability arising from the material contribution to mesothelioma during its period of cover, as the 'rateable proportion' clause does not apply to successive policies and there is no basis in custom, practice, or business efficacy to imply a term limiting liability to a proportionate share.

Court Disposition

Judgment for the Claimant

Orders

  • Defendants to pay the outstanding balance of £56,375 plus interest under the judgment.