Falcongate Freight Management v Zurich Insurance Company (t/a Zurich Commercial)

Falcongate Freight Management v Zurich Insurance Company (t/a Zurich Commercial)

There were triable issues as to whether the employment had transferred under TUPE before the accident, whether the settlement was reasonable, and whether the insurance policy covered the claim. These could not be resolved on summary judgment. The appeal was allowed and the matter remitted for trial.

Parties
Appellant/defendant: Falcongate Freight Management Limited; Respondent/claimant: Zurich Insurance Company T/A Zurich Commercial
Jurisdiction
England and Wales
Judgment Date
12 November 2008
Procedural Posture
Civil Appeal / Appeal From Summary Judgment to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Employers' Liability Insurance, Transfer of Undertakings (tupe), Reasonable Settlement, Indemnity, Subrogation
Insurance Law Employment Law Employers' Liability Insurance Transfer of Undertakings (tupe) Reasonable Settlement Indemnity Subrogation

Case Brief

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Parties

Falcongate Freight Management Limited

Appellant/defendant

Zurich Insurance Company T/A Zurich Commercial

Respondent/claimant

Procedural Posture

Civil Appeal / Appeal From Summary Judgment to Court of Appeal

Legal Issues

  1. 1 Whether the appellant was entitled to indemnity under the employer’s liability insurance policy for a settlement paid to an employee injured after a business transfer.
  2. 2 Whether the employee’s contract of employment had transferred to another company under TUPE prior to the accident.
  3. 3 Whether the settlement with the employee was reasonable and covered by the insurance policy.

Ratio Decidendi

There were triable issues as to whether the employment had transferred under TUPE before the accident, whether the settlement was reasonable, and whether the insurance policy covered the claim. These could not be resolved on summary judgment. The appeal was allowed and the matter remitted for trial.

Court Disposition

Appeal allowed

Orders

  • Summary judgment set aside
  • Matter remitted for trial