Komives v Hick Lane Bedding Ltd & Anor [2020] EWHC 3288 (QB) (12 March 2020)

Komives v Hick Lane Bedding Ltd & Anor [2020] EWHC 3288 (QB) (12 March 2020)

AmTrust was contractually entitled to avoid the policy due to material non-disclosure and misrepresentation by the insured, and did not act unreasonably in doing so. The statutory scheme does not prevent such avoidance, and ICOBS 8.1.1 does not alter the substantive law but only imposes a process requirement.

Citation
[2020] EWHC 3288
Parties
Claimant: Attila Komives; Claimant: Josef Varhelyi; First Defendant: Hick Lane Bedding Ltd; Second Defendant: AM Trust Europe Ltd
Jurisdiction
England and Wales
Judgment Date
12 March 2020
Procedural Posture
Civil (insurance/personal Injury) / Trial of Preliminary Issues
Outcome
Claims dismissed on preliminary issues; insurer entitled to avoid policy.
Legal Topics
Material Non Disclosure, Misrepresentation, Employers' Liability Insurance, Modern Slavery, Policy Avoidance, Third Parties (rights Against Insurers) Act 1930, ICOBS (insurance Conduct of Business Sourcebook), Compulsory Insurance Regulations
Insurance Law Employment Law Personal Injury Material Non Disclosure Misrepresentation Employers' Liability Insurance Modern Slavery Policy Avoidance +3 more

Case Brief

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Parties

Attila Komives

Claimant

Josef Varhelyi

Claimant

Hick Lane Bedding Ltd

First Defendant

AM Trust Europe Ltd

Second Defendant

Procedural Posture

Civil (insurance/personal Injury) / Trial of Preliminary Issues

Legal Issues

  1. 1 Whether AmTrust was entitled to avoid the policy for material non-disclosure and/or misrepresentation
  2. 2 Whether the policy had been validly avoided
  3. 3 Whether the claimants have a valid claim against AmTrust under the Third Parties (Rights Against Insurers) Act 1930

Ratio Decidendi

AmTrust was contractually entitled to avoid the policy due to material non-disclosure and misrepresentation by the insured, and did not act unreasonably in doing so. The statutory scheme does not prevent such avoidance, and ICOBS 8.1.1 does not alter the substantive law but only imposes a process requirement.

Court Disposition

Claims dismissed on preliminary issues; insurer entitled to avoid policy.

Orders

  • Declaration that AmTrust validly avoided the policy for material non-disclosure and/or misrepresentation
  • Claimants have no valid claim against AmTrust under the Third Parties (Rights Against Insurers) Act 1930