Involnert Management Inc v Aprilgrange Ltd & Ors

Involnert Management Inc v Aprilgrange Ltd & Ors

Insurers were entitled to avoid the policy for non-disclosure of material facts (valuation, manager's advice, marketing at €8m), which induced them to insure at €13m instead of €8m. Misrepresentation in the proposal form was not causative. Claimant's failure to file a sworn proof of loss within 90 days barred recovery under Section A. AIS breached duty by failing to ensure the proposal form stated manager's opinion of market value, causing claimant to lose valid insurance for €8m and recoverable €2m under Section B. OAMPS owed no direct duty and was not negligent.

Parties
Claimant: Involnert Management Inc; Defendants: Aprilgrange Limited & Others; First Third Party: AIS Insurance Services Limited; Second Third Party: OAMPS Special Risks Limited
Jurisdiction
England and Wales
Judgment Date
10 August 2015
Procedural Posture
Commercial Insurance Dispute / Final Judgment
Outcome
Claims against Insurers and OAMPS dismissed; claim against AIS succeeds in part.
Legal Topics
Non Disclosure, Misrepresentation, Broker Negligence, Marine Insurance, Duty of Disclosure, Proposal Form Completion, Notice of Abandonment, Proof of Loss, Waiver, Inducement, Materiality
Insurance Law Contract Law Tort Law Non Disclosure Misrepresentation Broker Negligence Marine Insurance Duty of Disclosure +6 more

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Parties

Involnert Management Inc

Claimant

Aprilgrange Limited & Others

Defendants

AIS Insurance Services Limited

First Third Party

OAMPS Special Risks Limited

Second Third Party

Procedural Posture

Commercial Insurance Dispute / Final Judgment

Legal Issues

  1. 1 Whether non-disclosure of material facts entitled insurers to avoid the policy
  2. 2 Whether misrepresentation in the proposal form induced insurers to contract
  3. 3 Whether failure to comply with policy requirements barred recovery

Ratio Decidendi

Insurers were entitled to avoid the policy for non-disclosure of material facts (valuation, manager's advice, marketing at €8m), which induced them to insure at €13m instead of €8m. Misrepresentation in the proposal form was not causative. Claimant's failure to file a sworn proof of loss within 90 days barred recovery under Section A. AIS breached duty by failing to ensure the proposal form stated manager's opinion of market value, causing claimant to lose valid insurance for €8m and recoverable €2m under Section B. OAMPS owed no direct duty and was not negligent.

Court Disposition

Claims against Insurers and OAMPS dismissed; claim against AIS succeeds in part.

Orders

  • AIS to pay claimant €2,000,000 in damages.
  • No recovery against Insurers or OAMPS.