Cape Distribution Ltd v Cape Intermediate Holdings Plc

Cape Distribution Ltd v Cape Intermediate Holdings Plc

CIH is precluded from claiming contribution against CDL under section 1 of the 1978 Act due to CDL’s entitlement to contractual indemnity; Aviva is barred from pursuing subrogated claims in CDL’s name against CIH in 'straddler' mesothelioma cases due to co-insurance; limitation for indemnity claims runs from establishment or realisation of liability; CIH cannot assert time-bar for claims it consented to amend; CPR 17.2 applies to amendments made by consent.

Parties
Claimant: Cape Distribution Limited; Defendant/part 20 Claimant: Cape Intermediate Holdings PLC; Part 20 Defendant: Aviva PLC
Jurisdiction
England and Wales
Judgment Date
19 July 2016
Procedural Posture
Civil / Post Preliminary Issues, Determination of Further Issues Before Main Trial
Outcome
Determination of issues as set out; consequential orders deferred to further hearing.
Legal Topics
Indemnity, Contribution, Limitation, Subrogation, Co Insurance, Apportionment, Defence Costs
Insurance Law Contract Law Tort Law Civil Procedure Indemnity Contribution Limitation Subrogation +3 more

Case Brief

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Parties

Cape Distribution Limited

Claimant

Cape Intermediate Holdings PLC

Defendant/part 20 Claimant

Aviva PLC

Part 20 Defendant

Procedural Posture

Civil / Post Preliminary Issues, Determination of Further Issues Before 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 can pursue indemnities in 'straddler' cases (employees exposed before and after 25 November 1964)
  3. 3 Limitation periods for CDL’s contractual indemnity claims and whether any claims are time-barred

Ratio Decidendi

CIH is precluded from claiming contribution against CDL under section 1 of the 1978 Act due to CDL’s entitlement to contractual indemnity; Aviva is barred from pursuing subrogated claims in CDL’s name against CIH in 'straddler' mesothelioma cases due to co-insurance; limitation for indemnity claims runs from establishment or realisation of liability; CIH cannot assert time-bar for claims it consented to amend; CPR 17.2 applies to amendments made by consent.

Court Disposition

Determination of issues as set out; consequential orders deferred to further hearing.

Orders

  • CIH precluded from claiming contribution against CDL under section 1 of the 1978 Act for counterclaims based on CDL’s negligence and joint liability.
  • Aviva precluded from pursuing subrogated claims in CDL’s name for mesothelioma in 'straddler' cases with exposure after 25 November 1964.