Sky UK Limited & Anor v Riverstone Managing Agency Limited & Ors

Sky UK Limited & Anor v Riverstone Managing Agency Limited & Ors

Indemnity under a construction all risks policy covering 'damage occurring during the period of insurance' includes the cost of remedying foreseeable deterioration and development damage after expiry of the policy period, provided such damage results from insured events during the period. Investigation and mitigation costs reasonably incurred are recoverable. The deductible applies to a single event, being the design decision not to use a temporary roof, not to each cassette. Composite insureds are entitled to separate recovery for their respective interests.

Parties
Claimant/appellant: Sky UK Limited; Claimant/appellant: Mace Limited; Defendant/respondent/cross Appellant: Riverstone Managing Agency Limited; Defendant/respondent/cross Appellant: The Underwriting Members of Lloyd’s Syndicate 3210 for the 2014 Year of Account Subscribing to Policy B0509DD190814; Defendant/respondent/cross Appellant: Old Company 18 Limited; Defendant/respondent/cross Appellant: Aspen Insurance UK Limited; Defendant/respondent/cross Appellant: Royal & Sun Alliance Insurance PLC; Defendant/respondent/cross Appellant: HSB Engineering Insurance Limited; Defendant/respondent/cross Appellant: Berkshire Hathaway International Insurance Limited; Defendant/respondent/cross Appellant: MSI Corporate Capital Limited
Jurisdiction
England and Wales
Judgment Date
16 December 2024
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeals of Sky and Mace allowed; Insurers' appeal dismissed.
Legal Topics
Property Damage, Indemnity, Policy Interpretation, Aggregation Clauses, Mitigation of Loss, Composite Insurance, Deductibles
Insurance Law Construction Law Contract Law Property Damage Indemnity Policy Interpretation Aggregation Clauses Mitigation of Loss +2 more

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Parties

Sky UK Limited

Claimant/appellant

Mace Limited

Claimant/appellant

Riverstone Managing Agency Limited

Defendant/respondent/cross Appellant

The Underwriting Members of Lloyd’s Syndicate 3210 for the 2014 Year of Account Subscribing to Policy B0509DD190814

Defendant/respondent/cross Appellant

Old Company 18 Limited

Defendant/respondent/cross Appellant

Aspen Insurance UK Limited

Defendant/respondent/cross Appellant

Royal & Sun Alliance Insurance PLC

Defendant/respondent/cross Appellant

HSB Engineering Insurance Limited

Defendant/respondent/cross Appellant

Berkshire Hathaway International Insurance Limited

Defendant/respondent/cross Appellant

MSI Corporate Capital Limited

Defendant/respondent/cross Appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether indemnity under a construction all risks policy covers deterioration and development damage occurring after the policy period
  2. 2 Proper measure of damages under property insurance
  3. 3 Meaning of 'damage' in the policy

Ratio Decidendi

Indemnity under a construction all risks policy covering 'damage occurring during the period of insurance' includes the cost of remedying foreseeable deterioration and development damage after expiry of the policy period, provided such damage results from insured events during the period. Investigation and mitigation costs reasonably incurred are recoverable. The deductible applies to a single event, being the design decision not to use a temporary roof, not to each cassette. Composite insureds are entitled to separate recovery for their respective interests.

Court Disposition

Appeals of Sky and Mace allowed; Insurers' appeal dismissed.

Orders

  • Matter remitted to the High Court Judge for re-evaluation of quantum and scope of recoverable damages, including deterioration and development damage after expiry of the policy period.
  • Judge to reconsider investigation costs and damage to roof areas beyond gutter timbers.