Reilly v National Insurance and Guarantee Corporation Ltd

Reilly v National Insurance and Guarantee Corporation Ltd

Clause TP34S is not limited to fire and intruder alarms but extends to machinery generally. The actuator and valve mechanism constitute 'machinery' under the clause. If the failure was due to the actuator piston not latching, the claim is excluded. If the failure was due to insufficient pressure from incorrect filling or leakage from the valve, the claim is not excluded.

Parties
Claimant/appellant: John Reilly; Defendant/respondent: National Insurance and Guarantee Corporation Ltd
Jurisdiction
England and Wales
Judgment Date
19 December 2008
Procedural Posture
Civil Appeal / Appeal From High Court (commercial Court) on Preliminary Issue
Outcome
Appeal allowed in part
Legal Topics
Interpretation of Insurance Policy Exclusions, Product Liability, Construction of Commercial Contracts
Insurance Law Contract Law Interpretation of Insurance Policy Exclusions Product Liability Construction of Commercial Contracts

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Parties

John Reilly

Claimant/appellant

National Insurance and Guarantee Corporation Ltd

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (commercial Court) on Preliminary Issue

Legal Issues

  1. 1 Whether clause TP34S excludes the claimant’s claim under the insurance policy for failure of fire suppression equipment
  2. 2 Proper construction of the exclusion clause TP34S in the insurance policy

Ratio Decidendi

Clause TP34S is not limited to fire and intruder alarms but extends to machinery generally. The actuator and valve mechanism constitute 'machinery' under the clause. If the failure was due to the actuator piston not latching, the claim is excluded. If the failure was due to insufficient pressure from incorrect filling or leakage from the valve, the claim is not excluded.

Court Disposition

Appeal allowed in part

Orders

  • If the failure was due to incorrect filling or leakage from the valve, the claim is not excluded by clause TP34S.
  • If the failure was due to the actuator piston not latching, the claim is excluded by clause TP34S.