Reilly v National Insurance and Guarantee Corporation Ltd [2008] EWCA Civ 1460 (19 December 2008)

Reilly v National Insurance and Guarantee Corporation Ltd [2008] EWCA Civ 1460 (19 December 2008)

The exclusion in clause TP34S is not limited to fire and intruder alarms but extends to machinery; the actuator and valve mechanism in the fire suppression system constitute 'machinery'. If the failure was due to the actuator piston not latching, the claim is excluded. If the failure was due to insufficient pressure from incorrect filling or leakage from the valve, the claim is not excluded.

Citation
[2008] EWCA Civ 1460
Parties
Claimant/appellant: John Reilly; Defendant/respondent: National Insurance and Guarantee Corporation Ltd
Jurisdiction
England and Wales
Judgment Date
19 December 2008
Procedural Posture
Appeal (civil) / Appeal From High Court (commercial Court) on Preliminary Issue
Outcome
Appeal allowed in part
Legal Topics
Policy Interpretation, Exclusion Clauses, Product Liability, Construction of Insurance Contracts
Insurance Law Contract Law Policy Interpretation Exclusion Clauses Product Liability Construction of Insurance Contracts

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 5 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

John Reilly

Claimant/appellant

National Insurance and Guarantee Corporation Ltd

Defendant/respondent

Procedural Posture

Appeal (civil) / Appeal From High Court (commercial Court) on Preliminary Issue

Legal Issues

  1. 1 Whether clause TP34S excludes the claimant's claim under the insurance policy for failure of fire suppression equipment
  2. 2 Proper construction of exclusion clause TP34S in the insurance policy

Ratio Decidendi

The exclusion in clause TP34S is not limited to fire and intruder alarms but extends to machinery; the actuator and valve mechanism in the fire suppression system constitute 'machinery'. If the failure was due to the actuator piston not latching, the claim is excluded. If the failure was due to insufficient pressure from incorrect filling or leakage from the valve, the claim is not excluded.

Court Disposition

Appeal allowed in part

Orders

  • If the failure was due to incorrect filling or leakage from the discharge valve, the claim is not excluded; if due to actuator piston failure, the claim is excluded.