Wise (Underwriting Agency) Ltd & Ors v Grupo Nacional Provincial SA

Wise (Underwriting Agency) Ltd & Ors v Grupo Nacional Provincial SA

The majority held that there was no waiver by the reinsurers because the slip presentation, though mistranslated, did not put a reasonably careful insurer on inquiry about the shipment of high-value branded watches. However, the majority found that notice of cancellation was in fact given by the reinsurers, amounting to affirmation of the contract, and thus the reinsurers could not avoid liability. The reinsurers were found to have been induced by non-disclosure, but affirmation barred avoidance.

Parties
Claimant/respondent: WISE (Underwriting Agency) Ltd & Ors; Defendant/appellant: Grupo Nacional Provincial S. A.
Jurisdiction
England and Wales
Judgment Date
20 July 2004
Procedural Posture
Civil Appeal / Appeal From Queen’s Bench Division, Commercial Court
Outcome
Appeal allowed for GNP (Defendant/Appellant)
Legal Topics
Non Disclosure, Waiver, Affirmation, Materiality, Inducement, Marine Insurance
Insurance Law Contract Law Non Disclosure Waiver Affirmation Materiality Inducement Marine Insurance

Case Brief

Summary, issues, holding and outcome

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Parties

WISE (Underwriting Agency) Ltd & Ors

Claimant/respondent

Grupo Nacional Provincial S. A.

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Queen’s Bench Division, Commercial Court

Legal Issues

  1. 1 Whether the reinsurers waived disclosure of the shipment of high-value branded watches due to the presentation of the risk
  2. 2 Whether the reinsurers affirmed the contract by giving notice of cancellation
  3. 3 Whether the reinsurers were induced to enter the contract by non-disclosure

Ratio Decidendi

The majority held that there was no waiver by the reinsurers because the slip presentation, though mistranslated, did not put a reasonably careful insurer on inquiry about the shipment of high-value branded watches. However, the majority found that notice of cancellation was in fact given by the reinsurers, amounting to affirmation of the contract, and thus the reinsurers could not avoid liability. The reinsurers were found to have been induced by non-disclosure, but affirmation barred avoidance.

Court Disposition

Appeal allowed for GNP (Defendant/Appellant)

Orders

  • Order of the judge set aside
  • WISE’s (Respondent’s) claim dismissed