Royal & Sun Alliance Insurance Ltd & Ors v Tughans [2022] EWHC 2589 (Comm) (14 October 2022)

Royal & Sun Alliance Insurance Ltd & Ors v Tughans [2022] EWHC 2589 (Comm) (14 October 2022)

The arbitrator had jurisdiction to determine indemnity for damages relating to the Tughans Fee because the notice of arbitration and prior correspondence objectively included such claims; there was no serious irregularity as the issue was properly before the arbitrator; and the arbitrator did not err in law in holding the policy covered damages for the Tughans Fee if established as a civil liability.

Citation
[2022] EWHC 2589 (Comm)
Parties
Claimant / Arbitration Respondent: Royal & Sun Alliance Insurance Limited & Others; Defendant / Arbitration Claimant: Tughans (a firm)
Jurisdiction
England and Wales
Judgment Date
14 October 2022
Procedural Posture
Arbitration Act 1996 Challenge (high Court, Commercial Court) / Judgment on Challenges to Arbitral Award (ss.67, 68, 69)
Outcome
All challenges to the arbitral award dismissed.
Legal Topics
Indemnity Under Professional Liability Insurance, Jurisdiction of Arbitral Tribunal, Serious Irregularity in Arbitration, Error of Law in Arbitral Award
Insurance Law Arbitration Professional Negligence Indemnity Under Professional Liability Insurance Jurisdiction of Arbitral Tribunal Serious Irregularity in Arbitration Error of Law in Arbitral Award

Case Brief

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Parties

Royal & Sun Alliance Insurance Limited & Others

Claimant / Arbitration Respondent

Tughans (a firm)

Defendant / Arbitration Claimant

Procedural Posture

Arbitration Act 1996 Challenge (high Court, Commercial Court) / Judgment on Challenges to Arbitral Award (ss.67, 68, 69)

Legal Issues

  1. 1 Whether the arbitrator had jurisdiction to determine indemnity for damages relating to the Tughans Fee
  2. 2 Whether there was a serious irregularity in the arbitral proceedings under s.68 Arbitration Act 1996
  3. 3 Whether the arbitrator made an error of law in holding the policy covered damages for the Tughans Fee

Ratio Decidendi

The arbitrator had jurisdiction to determine indemnity for damages relating to the Tughans Fee because the notice of arbitration and prior correspondence objectively included such claims; there was no serious irregularity as the issue was properly before the arbitrator; and the arbitrator did not err in law in holding the policy covered damages for the Tughans Fee if established as a civil liability.

Court Disposition

All challenges to the arbitral award dismissed.

Orders

  • The arbitral award stands; RSA is liable to indemnify Tughans in respect of damages for the Tughans Fee if established as a civil liability.
  • Costs orders as per the arbitral award remain in effect.