Sky UK Ltd & Anor v Riverstone Managing Agency Lt & Ors [2024] EWCA Civ 1567 (16 December 2024)

Sky UK Ltd & Anor v Riverstone Managing Agency Lt & Ors [2024] EWCA Civ 1567 (16 December 2024)

The policy covers not only damage existing at the end of the period of insurance but also subsequent deterioration and development damage that is the natural and foreseeable consequence of insured events occurring during the policy period, provided there is no intervening cause. The measure of indemnity is the cost of remedying all such damage, subject to the usual principles of mitigation and remoteness. The deductible applies once per event, not per cassette. Mace is entitled to indemnity for its proprietary interest up to practical completion but not thereafter.

Citation
[2024] EWCA Civ 1567
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
Appeal (civil) / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed in part; cross-appeal dismissed in part; judgment varied
Legal Topics
Property Insurance Indemnity, Measure of Loss Under Insurance, Construction All Risks Policy, Temporal Scope of Insurance Cover, Mitigation of Loss, Deductibles in Insurance, Interpretation of Insurance Contracts
Insurance Law Construction Law Contract Law Property Insurance Indemnity Measure of Loss Under Insurance Construction All Risks Policy Temporal Scope of Insurance Cover 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

Appeal (civil) / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the policy covers only damage existing at the end of the period of insurance or also subsequent deterioration and development damage caused by insured events during the policy period
  2. 2 Proper measure of indemnity under a construction all risks policy
  3. 3 Application of deductible per event or per cassette

Ratio Decidendi

The policy covers not only damage existing at the end of the period of insurance but also subsequent deterioration and development damage that is the natural and foreseeable consequence of insured events occurring during the policy period, provided there is no intervening cause. The measure of indemnity is the cost of remedying all such damage, subject to the usual principles of mitigation and remoteness. The deductible applies once per event, not per cassette. Mace is entitled to indemnity for its proprietary interest up to practical completion but not thereafter.

Court Disposition

Appeal allowed in part; cross-appeal dismissed in part; judgment varied

Orders

  • Declaration that the policy covers deterioration and development damage naturally resulting from insured events during the policy period
  • Remitted to High Court for quantification of loss on the correct basis