PA(GI) Ltd v GICL 2013 Ltd & Anor

PA(GI) Ltd v GICL 2013 Ltd & Anor

The definition of 'Transferred Liabilities' in the 2006 Scheme and Order, interpreted in its natural and commercial context, does not include liability for alleged mis-selling of PPI policies; such liability does not 'attach to' the transferred policies and was not expressly transferred.

Parties
Claimant: PA(GI) LIMITED; First Defendant: GICL 2013 LIMITED; Second Defendant: CIGNA INSURANCE SERVICES (EUROPE) LIMITED
Jurisdiction
England and Wales
Judgment Date
05 June 2015
Procedural Posture
Originating Application Under Liberty to Apply Provision in Insurance Business Transfer Scheme Order / Judgment on Application for Determination of Liability Transfer Under Part VII Scheme
Outcome
Application dismissed; liability for alleged mis-selling of PPI policies remains with PAGI.
Legal Topics
Insurance Business Transfer Schemes, Liability for Mis Selling, Statutory Novation, Interpretation of Contractual Terms, Financial Ombudsman Service Liability
Insurance Law Contract Law Financial Regulation Insurance Business Transfer Schemes Liability for Mis Selling Statutory Novation Interpretation of Contractual Terms Financial Ombudsman Service Liability

Case Brief

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Parties

PA(GI) LIMITED

Claimant

GICL 2013 LIMITED

First Defendant

CIGNA INSURANCE SERVICES (EUROPE) LIMITED

Second Defendant

Procedural Posture

Originating Application Under Liberty to Apply Provision in Insurance Business Transfer Scheme Order / Judgment on Application for Determination of Liability Transfer Under Part VII Scheme

Legal Issues

  1. 1 Whether liability for alleged mis-selling of PPI policies underwritten by PAGI was transferred to Groupama under the 2006 Part VII Scheme
  2. 2 Construction of 'Transferred Liabilities' in the scheme terms and order

Ratio Decidendi

The definition of 'Transferred Liabilities' in the 2006 Scheme and Order, interpreted in its natural and commercial context, does not include liability for alleged mis-selling of PPI policies; such liability does not 'attach to' the transferred policies and was not expressly transferred.

Court Disposition

Application dismissed; liability for alleged mis-selling of PPI policies remains with PAGI.

Orders

  • Declaration that 'Transferred Liabilities' under the 2006 Scheme do not include liability for alleged mis-selling of PPI policies.
  • Insurer responsible for FOS claims is PAGI, not Groupama.