Colley v Shuker & Ors [2020] EWHC 3433 (QB) (14 December 2020)

Colley v Shuker & Ors [2020] EWHC 3433 (QB) (14 December 2020)

The Motor Insurers Bureau, as an emanation of the State, is directly liable under Articles 3(1), 10, and 12 of Directive 2009/103/EC to compensate the Claimant where the UK has failed to implement the Directive fully, specifically due to the operation of section 152(2) of the Road Traffic Act 1988, which is incompatible with EU law. However, the MIB is entitled to rely on the exclusion in Article 10(2) of the Directive, as the Claimant knowingly entered the vehicle while aware it was uninsured, and thus compensation can be lawfully excluded.

Citation
[2020] EWHC 3433
Parties
Claimant: Mr Daniel James Colley; First Defendant: Mr Dylan Shuker; Second Defendant: UK Insurance Limited; Third Defendant: Motor Insurers Bureau; Fourth Defendant: Secretary of State for Transport
Jurisdiction
England and Wales
Judgment Date
14 December 2020
Procedural Posture
Personal Injury / Motor Insurance Claim / Judgment on Preliminary Issues
Outcome
Claim against the MIB dismissed on the basis of Article 10(2) exclusion; MIB not liable to compensate the Claimant.
Legal Topics
Motor Insurance Directive, Direct Effect of EU Directives, Compulsory Motor Insurance, State Liability (francovich), Uninsured Drivers, Emanation of the State
Insurance Law European Union Law Personal Injury Motor Insurance Directive Direct Effect of EU Directives Compulsory Motor Insurance State Liability (francovich) Uninsured Drivers +1 more

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Parties

Mr Daniel James Colley

Claimant

Mr Dylan Shuker

First Defendant

UK Insurance Limited

Second Defendant

Motor Insurers Bureau

Third Defendant

Secretary of State for Transport

Fourth Defendant

Procedural Posture

Personal Injury / Motor Insurance Claim / Judgment on Preliminary Issues

Legal Issues

  1. 1 Whether the Motor Insurers Bureau (MIB) is liable to compensate the Claimant under Articles 3(1) and 12 of Directive 2009/103/EC where the insurer has avoided liability due to misrepresentation and national law is incompatible with the Directive.
  2. 2 Whether the MIB can rely on the exclusion in Article 10(2) of Directive 2009/103/EC to deny compensation to a passenger who knew the vehicle was uninsured.

Ratio Decidendi

The Motor Insurers Bureau, as an emanation of the State, is directly liable under Articles 3(1), 10, and 12 of Directive 2009/103/EC to compensate the Claimant where the UK has failed to implement the Directive fully, specifically due to the operation of section 152(2) of the Road Traffic Act 1988, which is incompatible with EU law. However, the MIB is entitled to rely on the exclusion in Article 10(2) of the Directive, as the Claimant knowingly entered the vehicle while aware it was uninsured, and thus compensation can be lawfully excluded.

Court Disposition

Claim against the MIB dismissed on the basis of Article 10(2) exclusion; MIB not liable to compensate the Claimant.

Orders

  • Claim against the Motor Insurers Bureau dismissed.
  • No order as to costs at this stage.