Standard Life Assurance Ltd v Oak Dedicated Ltd & Ors [2008] EWHC 222 (Comm) (13 February 2008)

Standard Life Assurance Ltd v Oak Dedicated Ltd & Ors [2008] EWHC 222 (Comm) (13 February 2008)

The policy, properly construed, permits aggregation of claims by different claimants arising from a single originating cause or source, and the excess of £25 million does not apply per claimant but per aggregated claim. The words 'and/or claimant' in the schedule do not override the aggregation provisions in the definitions. The Part VII transfer under FSMA 2000 was effective to vest rights of action in the claimant. Aon was negligent in failing to ensure the policy wording clearly met the client's requirements, but causation and quantum are reserved for Stage 2.

Citation
[2008] EWHC 222 (Comm)
Parties
Claimant/part 20 Claimant: Standard Life Assurance Limited; Defendants: Oak Dedicated Limited and others; Part 20 Defendant: Aon Limited (formerly Aon Group Limited); Part 20 Defendant: Reynolds Porter Chamberlain (a firm); Defendants: Insurer Defendants
Jurisdiction
England and Wales
Judgment Date
13 February 2008
Procedural Posture
Commercial Court Trial (conjoined Actions) / Stage 1 Trial on Preliminary Issues
Outcome
Judgment for the claimant on Stage 1 issues
Legal Topics
Policy Construction, Aggregation of Claims, Professional Indemnity Insurance, Broker Negligence, Excess Clause Interpretation, Transfer of Rights Under FSMA 2000
Insurance Law Contract Law Professional Negligence Policy Construction Aggregation of Claims Professional Indemnity Insurance Broker Negligence Excess Clause Interpretation +1 more

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Parties

Standard Life Assurance Limited

Claimant/part 20 Claimant

Oak Dedicated Limited and others

Defendants

Aon Limited (formerly Aon Group Limited)

Part 20 Defendant

Reynolds Porter Chamberlain (a firm)

Part 20 Defendant

Insurer Defendants

Defendants

Procedural Posture

Commercial Court Trial (conjoined Actions) / Stage 1 Trial on Preliminary Issues

Legal Issues

  1. 1 Whether the policy permits aggregation of claims by different claimants arising from a single originating cause or source
  2. 2 Whether the excess of £25 million applies per claim or per claimant
  3. 3 Whether the Part VII transfer under FSMA 2000 vested rights of action in the claimant

Ratio Decidendi

The policy, properly construed, permits aggregation of claims by different claimants arising from a single originating cause or source, and the excess of £25 million does not apply per claimant but per aggregated claim. The words 'and/or claimant' in the schedule do not override the aggregation provisions in the definitions. The Part VII transfer under FSMA 2000 was effective to vest rights of action in the claimant. Aon was negligent in failing to ensure the policy wording clearly met the client's requirements, but causation and quantum are reserved for Stage 2.

Court Disposition

Judgment for the claimant on Stage 1 issues

Orders

  • Declaration that the policy permits aggregation of claims by different claimants arising from a single originating cause or source
  • Declaration that the excess applies per aggregated claim, not per claimant