AXA France IARD SA v Santander Cards UK Ltd [2025] EWHC 1881 (Comm) (25 July 2025)

AXA France IARD SA v Santander Cards UK Ltd [2025] EWHC 1881 (Comm) (25 July 2025)

The court found that no binding settlement agreement was concluded in 2015 obliging Santander to indemnify AXA for pre-2005 PPI mis-selling losses. The indemnity clause in the 2000 Agency Agreement did not extend to cover AXA's liabilities for customer redress, FOS fees, or administrative costs arising from mis-selling by Santander's predecessors. However, AXA was entitled to a contribution from Santander under the Civil Liability (Contribution) Act 1978 for losses where both were liable to customers for the same damage, subject to apportionment and limitation. The negligence claim was time-barred for sales before December 2002 and failed on the merits for later sales. Santander's set-off...

Citation
[2025] EWHC 1881 (Comm)
Parties
Claimant / Part 20 Defendant: AXA FRANCE IARD S. A.; Claimant / Part 20 Defendant: AXA FRANCE VIE S. A.; Defendant / Part 20 Claimant: SANTANDER CARDS UK LIMITED; Defendant / Part 20 Claimant: SANTANDER INSURANCE SERVICES UK LIMITED; Part 20 Claimant: SANTANDER UK PLC
Jurisdiction
England and Wales
Judgment Date
25 July 2025
Procedural Posture
Commercial Court Claim and Part 20 Claim / Liability Trial; Quantum Reserved for Further Determination
Outcome
AXA's claims for indemnity and under the alleged settlement agreement dismissed; AXA entitled to contribution from Santander under the Contribution Act for qualifying losses; quantum to be determined; Santander's set-off for £7 million allowed; Santander's counterclaim for £151 million dismissed.
Legal Topics
Payment Protection Insurance (ppi) Mis Selling, Indemnity and Agency Agreements, Contribution Under Civil Liability (contribution) Act 1978, Common Law Negligence, Settlement Agreements, Limitation of Actions
Insurance Law Commercial Law Agency Law Tort Law Payment Protection Insurance (ppi) Mis Selling Indemnity and Agency Agreements Contribution Under Civil Liability (contribution) Act 1978 Common Law Negligence +2 more

Case Brief

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Parties

AXA FRANCE IARD S. A.

Claimant / Part 20 Defendant

AXA FRANCE VIE S. A.

Claimant / Part 20 Defendant

SANTANDER CARDS UK LIMITED

Defendant / Part 20 Claimant

SANTANDER INSURANCE SERVICES UK LIMITED

Defendant / Part 20 Claimant

SANTANDER UK PLC

Part 20 Claimant

Procedural Posture

Commercial Court Claim and Part 20 Claim / Liability Trial; Quantum Reserved for Further Determination

Legal Issues

  1. 1 Whether a binding settlement agreement was concluded in 2015 obliging Santander to indemnify AXA for pre-2005 PPI mis-selling losses
  2. 2 Whether Santander is liable to indemnify AXA under the 2000 Agency Agreement for pre-2005 PPI mis-selling
  3. 3 Whether AXA is entitled to contribution from Santander under the Civil Liability (Contribution) Act 1978

Ratio Decidendi

The court found that no binding settlement agreement was concluded in 2015 obliging Santander to indemnify AXA for pre-2005 PPI mis-selling losses. The indemnity clause in the 2000 Agency Agreement did not extend to cover AXA's liabilities for customer redress, FOS fees, or administrative costs arising from mis-selling by Santander's predecessors. However, AXA was entitled to a contribution from Santander under the Civil Liability (Contribution) Act 1978 for losses where both were liable to customers for the same damage, subject to apportionment and limitation. The negligence claim was time-barred for sales before December 2002 and failed on the merits for later sales. Santander's set-off...

Court Disposition

AXA's claims for indemnity and under the alleged settlement agreement dismissed; AXA entitled to contribution from Santander under the Contribution Act for qualifying losses; quantum to be determined; Santander's set-off for £7 million allowed; Santander's counterclaim for £151 million dismissed.

Orders

  • AXA's claim for indemnity and under the 2015 settlement agreement is dismissed.
  • AXA is entitled to contribution from Santander under the Civil Liability (Contribution) Act 1978 for losses where both are liable to customers for the same damage, subject to apportionment and limitation.