The Cultural Foundation & Anor v Beazley Furlonge Ltd & Anor

The Cultural Foundation & Anor v Beazley Furlonge Ltd & Anor

The ASD claim, to the extent arising from defective design of Sector A columns, was not notified in the 2008/09 policy year but was notified in the 2009/10 policy year; claims relating to acoustic works and lack of detail in drawings were notified in 2008/09. Beazley is entitled to set off overpaid defence costs against indemnity owed, but neither claimants nor Beazley can recover such costs from Excess Insurers under the 1930 Act. Post-award interest is not covered by the policies as compensation or damages, but claimants may be entitled to statutory interest under the Senior Courts Act 1981.

Parties
First Claimant: The Cultural Foundation (doing business as American School of Dubai); Second Claimant: Abu Dhabi National Exhibitions Company; First Defendant: Beazley Furlonge Limited (as managing agent for Syndicate AFB 2623/623 at Lloyd’s); Third Defendant: Great Lakes Insurance S. E.; Fourth Defendant: MSI Corporate Capital Limited (Syndicate 3210); Fifth Defendant: Aspen Insurance UK Limited; Sixth Defendant: QBE Insurance (Europe) Limited
Jurisdiction
England and Wales
Judgment Date
08 May 2018
Procedural Posture
Commercial Insurance Dispute (preliminary Issues) / Judgment on Preliminary Issues After Trial
Outcome
Judgment for claimants and defendants in part; declarations on preliminary issues as set out in the judgment.
Legal Topics
Professional Indemnity Insurance, Notification of Circumstances, Policy Period Allocation, Set Off and Restitution, Third Parties (rights Against Insurers) Act 1930, Interest on Awards
Insurance Law Civil Procedure Insolvency Professional Indemnity Insurance Notification of Circumstances Policy Period Allocation Set Off and Restitution Third Parties (rights Against Insurers) Act 1930 +1 more

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 4 Authorities cited 14 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

The Cultural Foundation (doing business as American School of Dubai)

First Claimant

Abu Dhabi National Exhibitions Company

Second Claimant

Beazley Furlonge Limited (as managing agent for Syndicate AFB 2623/623 at Lloyd’s)

First Defendant

Great Lakes Insurance S. E.

Third Defendant

MSI Corporate Capital Limited (Syndicate 3210)

Fourth Defendant

Aspen Insurance UK Limited

Fifth Defendant

QBE Insurance (Europe) Limited

Sixth Defendant

Procedural Posture

Commercial Insurance Dispute (preliminary Issues) / Judgment on Preliminary Issues After Trial

Legal Issues

  1. 1 Which policy year(s) cover the ASD claim based on notifications made?
  2. 2 Whether Beazley can set off overpaid defence costs against indemnity owed to claimants?
  3. 3 Whether ASD/ADNEC can recover shortfalls from Excess Insurers?

Ratio Decidendi

The ASD claim, to the extent arising from defective design of Sector A columns, was not notified in the 2008/09 policy year but was notified in the 2009/10 policy year; claims relating to acoustic works and lack of detail in drawings were notified in 2008/09. Beazley is entitled to set off overpaid defence costs against indemnity owed, but neither claimants nor Beazley can recover such costs from Excess Insurers under the 1930 Act. Post-award interest is not covered by the policies as compensation or damages, but claimants may be entitled to statutory interest under the Senior Courts Act 1981.

Court Disposition

Judgment for claimants and defendants in part; declarations on preliminary issues as set out in the judgment.

Orders

  • ASD claim relating to Sector A columns not covered by 2008/09 policy but covered by 2009/10 policy; claims relating to acoustic works and lack of detail in drawings covered by 2008/09 policy.
  • Beazley entitled to set off overpaid defence costs against indemnity owed to claimants.