Novitas Loans Ltd v AmTrust Specialty Ltd [2026] EWHC 592 (Comm) (16 March 2026)

Novitas Loans Ltd v AmTrust Specialty Ltd [2026] EWHC 592 (Comm) (16 March 2026)

The court held that, subject to the detailed findings on each preliminary issue, the PI policies issued by Sompo may respond to AmTrust's claims only to the extent that the claims fall within the insuring clause and are not excluded, and that the aggregation provisions limit Sompo's liability to £3 million per firm. AmTrust's entitlement to subrogation is limited to cases where it indemnified under the ATE policy and not where payment was made as a volunteer or solely under the Deed of Indemnity. The duties owed by the solicitors under the TOBAs and in tort are not as broad as AmTrust contended and require proof of breach, causation and loss in each underlying case.

Citation
[2026] EWHC 592 (Comm)
Parties
Claimant: Novitas Loans Limited; Defendant/claimant (part 20): AmTrust Specialty Limited (formerly AmTrust Europe Limited); Third Party/defendant (part 20): Endurance Worldwide Insurance Limited (trading as Sompo International); Fourth Party: High Street Solicitors Limited (in creditors' voluntary liquidation); Defendants (subrogation Proceedings): (2)-(2421) The Persons Identified in Annex A to the Claim Form
Jurisdiction
England and Wales
Judgment Date
16 March 2026
Procedural Posture
Commercial Court Proceedings (including Part 20 and Subrogation Claims) / Judgment on Preliminary Issues After 12 Day Trial
Outcome
Preliminary issues determined in favour of Sompo on key coverage and aggregation points; AmTrust's claims under the PI policies are subject to a single £3 million limit per firm; subrogation rights limited as specified; further proceedings required for individual breach, causation and loss.
Legal Topics
Professional Indemnity Insurance Coverage, After the Event (ate) Insurance, Subrogation Rights, Aggregation of Claims, Duties of Solicitors Under Tobas, Restitution, Consumer Credit Litigation Funding, Policy Exclusions, Third Parties (rights Against Insurers) Act 2010
Insurance Law Professional Negligence Civil Procedure Contract Law Professional Indemnity Insurance Coverage After the Event (ate) Insurance Subrogation Rights Aggregation of Claims +5 more

Case Brief

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Parties

Novitas Loans Limited

Claimant

AmTrust Specialty Limited (formerly AmTrust Europe Limited)

Defendant/claimant (part 20)

Endurance Worldwide Insurance Limited (trading as Sompo International)

Third Party/defendant (part 20)

High Street Solicitors Limited (in creditors' voluntary liquidation)

Fourth Party

(2)-(2421) The Persons Identified in Annex A to the Claim Form

Defendants (subrogation Proceedings)

Procedural Posture

Commercial Court Proceedings (including Part 20 and Subrogation Claims) / Judgment on Preliminary Issues After 12 Day Trial

Legal Issues

  1. 1 Whether professional indemnity insurance policies issued by Sompo provide cover for AmTrust's claims
  2. 2 Whether claims are subject to aggregation or single claim limits under the policies
  3. 3 Whether AmTrust is entitled to subrogated rights against solicitors and/or their insurer

Ratio Decidendi

The court held that, subject to the detailed findings on each preliminary issue, the PI policies issued by Sompo may respond to AmTrust's claims only to the extent that the claims fall within the insuring clause and are not excluded, and that the aggregation provisions limit Sompo's liability to £3 million per firm. AmTrust's entitlement to subrogation is limited to cases where it indemnified under the ATE policy and not where payment was made as a volunteer or solely under the Deed of Indemnity. The duties owed by the solicitors under the TOBAs and in tort are not as broad as AmTrust contended and require proof of breach, causation and loss in each underlying case.

Court Disposition

Preliminary issues determined in favour of Sompo on key coverage and aggregation points; AmTrust's claims under the PI policies are subject to a single £3 million limit per firm; subrogation rights limited as specified; further proceedings required for individual breach, causation and loss.

Orders

  • Declaration that Sompo's liability under each PI policy is limited to £3 million per firm by aggregation.
  • Declaration that AmTrust is not entitled to subrogation where payment was made as a volunteer or solely under the Deed of Indemnity.