Milton Keynes Borough Council v Nulty & Ors [2011] EWHC 2847 (TCC) (03 November 2011)

Milton Keynes Borough Council v Nulty & Ors [2011] EWHC 2847 (TCC) (03 November 2011)

The court found that, on the balance of probabilities, the first fire was caused by a cigarette end discarded by Michael Nulty, amounting to negligence. The second fire was a consequence of the first, and the third fire was a rekindling. NIG's coverage defence failed as the prejudice from late notification was not established to the requisite standard. Judgment for the Council up to the policy limit.

Citation
[2011] EWHC 2847 (TCC)
Parties
Claimant (ht 09 273) / Defendant (ht 09 474): Milton Keynes Borough Council; Defendant (ht 09 273) / Defendant (ht 09 474): Michael Nulty (deceased); Defendant (ht 09 273): Wing Bat Security Limited (Formerly known as DBI Support Services Limited) (In Liquidation); Defendant (ht 09 273) / Claimant (ht 09 474): National Insurance and Guarantee Corporation Limited
Jurisdiction
England and Wales
Judgment Date
03 November 2011
Procedural Posture
Civil (tort/insurance) / Judgment After Trial
Outcome
Judgment for the claimant (Milton Keynes Borough Council) against Michael Nulty and NIG, limited to the insurance policy limit.
Legal Topics
Negligence, Causation, Subrogation, Insurance Coverage, Burden of Proof
Tort Law Insurance Law Civil Procedure Negligence Causation Subrogation Insurance Coverage Burden of Proof

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Parties

Milton Keynes Borough Council

Claimant (ht 09 273) / Defendant (ht 09 474)

Michael Nulty (deceased)

Defendant (ht 09 273) / Defendant (ht 09 474)

Wing Bat Security Limited (Formerly known as DBI Support Services Limited) (In Liquidation)

Defendant (ht 09 273)

National Insurance and Guarantee Corporation Limited

Defendant (ht 09 273) / Claimant (ht 09 474)

Procedural Posture

Civil (tort/insurance) / Judgment After Trial

Legal Issues

  1. 1 What was the cause of the first fire at the recycling centre?
  2. 2 Was Michael Nulty negligent in causing the fire?
  3. 3 Did the first fire cause the second fire?

Ratio Decidendi

The court found that, on the balance of probabilities, the first fire was caused by a cigarette end discarded by Michael Nulty, amounting to negligence. The second fire was a consequence of the first, and the third fire was a rekindling. NIG's coverage defence failed as the prejudice from late notification was not established to the requisite standard. Judgment for the Council up to the policy limit.

Court Disposition

Judgment for the claimant (Milton Keynes Borough Council) against Michael Nulty and NIG, limited to the insurance policy limit.

Orders

  • NIG to indemnify up to £2 million under the policy.
  • Claim against Nulty limited to £2 million; no enforcement against his estate beyond this amount.