HLB Kidsons (A Firm) v Lloyds Underwriters Subscribing to Lloyds Policy No 621/PKID00101 & Ors, Rev 1 [2007] EWHC 1951 (Comm) (09 August 2007)

HLB Kidsons (A Firm) v Lloyds Underwriters Subscribing to Lloyds Policy No 621/PKID00101 & Ors, Rev 1 [2007] EWHC 1951 (Comm) (09 August 2007)

On the proper construction of GC4, the extension of cover for claims made after the policy period is only triggered if the assured gives written notice of circumstances as soon as practicable after becoming aware of them during the policy period. Failure to give such notice as soon as practicable means the extension is not available, and post-policy claims are not covered. The arguments that late notification suffices or that public policy requires a different result are rejected.

Citation
[2007] EWHC 1951 (Comm)
Parties
Claimant: HLB Kidsons (A Firm); Defendants: Lloyds Underwriters subscribing to Lloyds Policy No 621/PKID00101 & Others
Jurisdiction
England and Wales
Judgment Date
09 August 2007
Procedural Posture
Commercial Court Trial / Judgment After Trial
Outcome
Claim dismissed as against the Underwriters; no declaration of entitlement to indemnity under the policy for post-policy claims based on late notification.
Legal Topics
Professional Indemnity Insurance, Claims Made Policies, Notification of Circumstances, Policy Construction, Condition Precedent, Extension of Cover
Insurance Law Contract Law Professional Negligence Professional Indemnity Insurance Claims Made Policies Notification of Circumstances Policy Construction Condition Precedent +1 more

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Parties

HLB Kidsons (A Firm)

Claimant

Lloyds Underwriters subscribing to Lloyds Policy No 621/PKID00101 & Others

Defendants

Procedural Posture

Commercial Court Trial / Judgment After Trial

Legal Issues

  1. 1 Whether communications relied upon by Kidsons constituted valid and effective notification of circumstances under GC4 of the policy
  2. 2 Whether claims arising in respect of S@FI fall within the scope of any such circumstance as may have been so notified
  3. 3 Proper construction of GC4 and requirements for valid notification

Ratio Decidendi

On the proper construction of GC4, the extension of cover for claims made after the policy period is only triggered if the assured gives written notice of circumstances as soon as practicable after becoming aware of them during the policy period. Failure to give such notice as soon as practicable means the extension is not available, and post-policy claims are not covered. The arguments that late notification suffices or that public policy requires a different result are rejected.

Court Disposition

Claim dismissed as against the Underwriters; no declaration of entitlement to indemnity under the policy for post-policy claims based on late notification.

Orders

  • No declaration granted in favour of Kidsons against Underwriters.
  • Costs and further directions to be determined.