Brian Leighton (Garages) Ltd v Allianz Insurance Plc [2023] EWCA Civ 8 (11 January 2023)

Brian Leighton (Garages) Ltd v Allianz Insurance Plc [2023] EWCA Civ 8 (11 January 2023)

The Court of Appeal held that Exclusion 9 in Section 1 of the policy excludes cover only where pollution or contamination is the proximate cause of the damage. The exclusion does not apply where pollution or contamination is merely part of the causative chain and not the proximate cause. The appeal was allowed, restoring BLG's claim for indemnity under the policy.

Citation
[2023] EWCA Civ 8
Parties
Appellant/claimant: Brian Leighton (Garages) Limited; Respondent/defendant: Allianz Insurance PLC
Jurisdiction
England and Wales
Judgment Date
11 January 2023
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Policy Interpretation, Exclusion Clauses, Business Interruption, Material Damage, Proximate Cause
Insurance Law Contract Law Policy Interpretation Exclusion Clauses Business Interruption Material Damage Proximate Cause

Case Brief

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Parties

Brian Leighton (Garages) Limited

Appellant/claimant

Allianz Insurance PLC

Respondent/defendant

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether Exclusion 9 in the insurance policy excludes cover for damage caused by pollution or contamination unless it is proximately caused by a specified event
  2. 2 Whether 'caused by' in Exclusion 9 refers to proximate cause or any part of the causative chain
  3. 3 Whether the exclusion applies to fuel leaks in the context of a motor trade policy

Ratio Decidendi

The Court of Appeal held that Exclusion 9 in Section 1 of the policy excludes cover only where pollution or contamination is the proximate cause of the damage. The exclusion does not apply where pollution or contamination is merely part of the causative chain and not the proximate cause. The appeal was allowed, restoring BLG's claim for indemnity under the policy.

Court Disposition

Appeal allowed

Orders

  • Summary judgment set aside
  • Claim for indemnity under the policy restored