The Cultural Foundation & Anor v Beazley Furlonge Ltd & Ors

The Cultural Foundation & Anor v Beazley Furlonge Ltd & Ors

Costs were apportioned between the parties based on relative success on discrete preliminary issues. ASD and ADNEC were broadly successful on the core Policy Period Issues and awarded the majority of their costs against Beazley, subject to deductions for issues lost. Beazley was awarded a proportion of its costs for Issue 5 against ASD and ADNEC. Excess Insurers were awarded costs on an issue-by-issue basis, reflecting their success or failure on each. Payments on account and interest on costs were ordered in line with standard practice and the parties' submissions.

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
15 August 2018
Procedural Posture
Commercial Insurance Dispute (costs Judgment) / Post Trial, Costs Determination After Preliminary Issues Judgment
Outcome
Costs apportioned between parties according to success on preliminary issues; payments on account and interest ordered.
Legal Topics
Professional Indemnity Insurance, Third Parties (rights Against Insurers) Act 1930, Costs Orders, Issue Based Costs Apportionment, Interest on Costs, Payments on Account
Insurance Law Civil Procedure Professional Indemnity Insurance Third Parties (rights Against Insurers) Act 1930 Costs Orders Issue Based Costs Apportionment Interest on Costs Payments on Account

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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 (costs Judgment) / Post Trial, Costs Determination After Preliminary Issues Judgment

Legal Issues

  1. 1 Which party is entitled to costs following the determination of preliminary issues in a professional indemnity insurance dispute?
  2. 2 How should costs be apportioned between parties based on success or failure on discrete issues?
  3. 3 Are ASD and ADNEC entitled to recover post-award interest under the policies?

Ratio Decidendi

Costs were apportioned between the parties based on relative success on discrete preliminary issues. ASD and ADNEC were broadly successful on the core Policy Period Issues and awarded the majority of their costs against Beazley, subject to deductions for issues lost. Beazley was awarded a proportion of its costs for Issue 5 against ASD and ADNEC. Excess Insurers were awarded costs on an issue-by-issue basis, reflecting their success or failure on each. Payments on account and interest on costs were ordered in line with standard practice and the parties' submissions.

Court Disposition

Costs apportioned between parties according to success on preliminary issues; payments on account and interest ordered.

Orders

  • Beazley to pay ASD 65% of its costs of the preliminary issues, subject to detailed assessment, with an interim payment of £260,000 within 28 days.
  • Beazley to pay ADNEC 53.5% of its costs of the preliminary issues, subject to detailed assessment, with an interim payment of £90,000 within 28 days.