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 contractually bound to indemnify the employer in respect of the material contribution made by its negligence during the period of cover. 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. The claimant is entitled to judgment for the full amount outstanding under the judgment against the employer.

Citation
[2003] EWHC 1084 (QB)
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 / Judgment After Trial
Outcome
Judgment for the claimant
Legal Topics
Employers' Liability, Indemnity, Mesothelioma, Asbestos Exposure, Third Parties (rights Against Insurers) Act 1930, Construction of Insurance Contracts
Insurance Law Tort Law Employers' Liability Indemnity Mesothelioma Asbestos Exposure Third Parties (rights Against Insurers) Act 1930 Construction of Insurance Contracts

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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 / Judgment After Trial

Legal Issues

  1. 1 Whether the insurer is liable for the full amount of the judgment or only a proportionate share corresponding to its period of cover under the employer's liability policy for asbestos-related disease (mesothelioma)
  2. 2 Whether condition 6 (rateable proportion clause) in the insurance policy applies to successive, as opposed to concurrent, insurance policies
  3. 3 Whether a term should be implied into the insurance contract to limit liability to a proportionate share based on custom, practice, or business efficacy

Ratio Decidendi

The insurer is contractually bound to indemnify the employer in respect of the material contribution made by its negligence during the period of cover. 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. The claimant is entitled to judgment for the full amount outstanding under the judgment against the employer.

Court Disposition

Judgment for the claimant

Orders

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