HLB Kidsons (A Firm) v Lloyd's Underwriters Subscribing To Lloyd's Policy No 621/PK1D00101 & Ors

HLB Kidsons (A Firm) v Lloyd's Underwriters Subscribing To Lloyd's Policy No 621/PK1D00101 & Ors

The Court held that the second (October 2001) and third (April 2002) presentations were effective notifications to the lead Lloyd’s syndicates and company market, but only in respect of implementation issues of S@FI products, not the essential validity or mis-selling of the products. The timing requirement for notification ('as soon as practicable') is a condition precedent to cover for future claims. The fourth (July 2002) presentation to the Lloyd’s following market was out of time and thus ineffective. The policy’s prejudice clause did not override the condition precedent nature of the timing requirement.

Parties
Appellant / Claimant: HLB Kidsons (a firm); Appellant / Defendant: CMS Cameron McKenna; Appellant / Defendant: Millers Professional Risks Limited (now Millers Insurance Services Limited); Respondent / Defendant: Lloyd’s Underwriters subscribing to Lloyd’s policy No 621/PK1D00101 & Others
Jurisdiction
England and Wales
Judgment Date
05 November 2008
Procedural Posture
Civil Appeal / Appeal From High Court (queen’s Bench Division)
Outcome
Appeal dismissed except to the extent that the October 2001 and April 2002 notifications were effective as to implementation issues of S@FI products generally (not limited to DOS) for the lead Lloyd’s syndicates and company market.
Legal Topics
Professional Indemnity Insurance, Notification of Circumstances, Claims Made Policies, Condition Precedent, Policy Construction
Insurance Law Contract Law Professional Indemnity Insurance Notification of Circumstances Claims Made Policies Condition Precedent Policy Construction

Case Brief

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Parties

HLB Kidsons (a firm)

Appellant / Claimant

CMS Cameron McKenna

Appellant / Defendant

Millers Professional Risks Limited (now Millers Insurance Services Limited)

Appellant / Defendant

Lloyd’s Underwriters subscribing to Lloyd’s policy No 621/PK1D00101 & Others

Respondent / Defendant

Procedural Posture

Civil Appeal / Appeal From High Court (queen’s Bench Division)

Legal Issues

  1. 1 Whether notifications made by the insured to underwriters were effective notifications of circumstances under the policy.
  2. 2 Whether the timing requirement ('as soon as practicable') for notification is a condition precedent to cover for future claims.
  3. 3 Whether the scope of the notifications extended to all S@FI products or only to implementation issues.

Ratio Decidendi

The Court held that the second (October 2001) and third (April 2002) presentations were effective notifications to the lead Lloyd’s syndicates and company market, but only in respect of implementation issues of S@FI products, not the essential validity or mis-selling of the products. The timing requirement for notification ('as soon as practicable') is a condition precedent to cover for future claims. The fourth (July 2002) presentation to the Lloyd’s following market was out of time and thus ineffective. The policy’s prejudice clause did not override the condition precedent nature of the timing requirement.

Court Disposition

Appeal dismissed except to the extent that the October 2001 and April 2002 notifications were effective as to implementation issues of S@FI products generally (not limited to DOS) for the lead Lloyd’s syndicates and company market.

Orders

  • Appeal dismissed save as to the limited success for the appellants on the scope of effective notification.
  • The parties to consider the appropriate form of order regarding the differing interests of the Lloyd’s lead syndicates and following market.