Tyco Fire & Integrated Solutions (UK) Ltd v Rolls-Royce Motor Cars Ltd [2008] EWCA Civ 286 (02 April 2008)

Tyco Fire & Integrated Solutions (UK) Ltd v Rolls-Royce Motor Cars Ltd [2008] EWCA Civ 286 (02 April 2008)

The Court held that the contract, properly construed, required Rolls-Royce to maintain joint names insurance for specified perils (including bursting of pipes) covering existing structures, and that this insurance arrangement relieved Tyco from liability for negligence causing such damage. The indemnity and...

Source-derived case information.

Citation
[2008] EWCA Civ 286
Parties
Claimant/respondent: Tyco Fire & Integrated Solutions (UK) Limited (formerly Wormald Ansul (UK) Limited); Defendant/appellant: Rolls-Royce Motor Cars Limited (formerly Hireus Limited)
Jurisdiction
England and Wales
Judgment Date
02 April 2008
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (technology and Construction Court)
Outcome
Appeal dismissed; judgment for Tyco affirmed.
Legal Topics
Joint Names Insurance, Contractual Indemnity, Negligence Liability, Specified Perils, Interpretation of Construction Contracts
Construction Law Insurance Law Contract Law Joint Names Insurance Contractual Indemnity Negligence Liability Specified Perils Interpretation of Construction Contracts

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Parties

Tyco Fire & Integrated Solutions (UK) Limited (formerly Wormald Ansul (UK) Limited)

Claimant/respondent

Rolls-Royce Motor Cars Limited (formerly Hireus Limited)

Defendant/appellant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (technology and Construction Court)

Legal Issues

  1. 1 Whether joint names insurance under the contract relieves the contractor (Tyco) from liability for negligence causing damage to existing structures (not the Works)
  2. 2 Whether the contract's indemnity and liability clauses are overridden by the insurance provisions for specified perils

Ratio Decidendi

The Court held that the contract, properly construed, required Rolls-Royce to maintain joint names insurance for specified perils (including bursting of pipes) covering existing structures, and that this insurance arrangement relieved Tyco from liability for negligence causing such damage. The indemnity and liability clauses did not override the insurance provision, and the parties intended to look to insurance rather than to each other for losses caused by specified perils, whether or not caused by negligence.

Court Disposition

Appeal dismissed; judgment for Tyco affirmed.

Orders

  • Rolls-Royce to repay Tyco the sums paid pursuant to the adjudication: £393,562.14 plus interest of £39,765.95 and costs of £100.