Mabey and Johnson Ltd. v Ecclesiastical Insurance Office Plc & Ors

Mabey and Johnson Ltd. v Ecclesiastical Insurance Office Plc & Ors

There were two separate and distinct contracts for the design, manufacture, and supply of bridges (Ghana I and Ghana II). Each contract gave rise to separate obligations and separate acts of negligence. Therefore, there are two claims for the purposes of the policy indemnity limit.

Parties
Claimant: Mabey and Johnson Limited; Defendants: Ecclesiastical Insurance Office Plc and others
Jurisdiction
England and Wales
Judgment Date
27 June 2003
Procedural Posture
Commercial Insurance Dispute / Judgment After Trial of Preliminary Issue
Outcome
Judgment for the Claimant (Mabey and Johnson Limited) on the preliminary issue
Legal Topics
Professional Indemnity Insurance, Interpretation of Insurance Contracts, Aggregation of Claims, Negligence in Design
Insurance Law Contract Law Professional Indemnity Insurance Interpretation of Insurance Contracts Aggregation of Claims Negligence in Design

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Parties

Mabey and Johnson Limited

Claimant

Ecclesiastical Insurance Office Plc and others

Defendants

Procedural Posture

Commercial Insurance Dispute / Judgment After Trial of Preliminary Issue

Legal Issues

  1. 1 Whether there is one or two 'claims' under the policy for the Ghana bridges for indemnity calculation purposes
  2. 2 Whether there were one or two contracts for the design and supply of the Ghana bridges
  3. 3 Whether there was separate negligence in the design of the Ghana II bridges

Ratio Decidendi

There were two separate and distinct contracts for the design, manufacture, and supply of bridges (Ghana I and Ghana II). Each contract gave rise to separate obligations and separate acts of negligence. Therefore, there are two claims for the purposes of the policy indemnity limit.

Court Disposition

Judgment for the Claimant (Mabey and Johnson Limited) on the preliminary issue

Orders

  • Declaration that there are two claims under the policy in respect of the Ghana bridges for the purpose of calculating the sums for which the Defendants are obliged to indemnify the Claimant for the policy year beginning 15 March 1996