Bolton Metropolitan Borough Council v Municipal Mutual Insurance Ltd. & Anor

Bolton Metropolitan Borough Council v Municipal Mutual Insurance Ltd. & Anor

The insurer liable under a public liability policy for asbestos-related disease is the one on risk at the time the disease manifests or is diagnosable, not at the time of exposure. Notification conditions precedent must be complied with unless waived by inconsistent conduct, which was not found here. There was no double insurance or right to contribution between the insurers on these facts.

Parties
Claimant: Bolton Metropolitan Borough Council; First Defendant and Main Appellant: Municipal Mutual Insurance Ltd; Second Defendant and Respondent: Commercial Union Assurance Company Ltd
Jurisdiction
England and Wales
Judgment Date
06 February 2006
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
All appeals dismissed except Bolton's appeal on costs, which is allowed.
Legal Topics
Public Liability Insurance, Asbestos Related Disease Claims, Policy Interpretation, Notification Conditions, Contribution Between Insurers, Waiver and Election
Insurance Law Tort Law Public Liability Insurance Asbestos Related Disease Claims Policy Interpretation Notification Conditions Contribution Between Insurers Waiver and Election

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Parties

Bolton Metropolitan Borough Council

Claimant

Municipal Mutual Insurance Ltd

First Defendant and Main Appellant

Commercial Union Assurance Company Ltd

Second Defendant and Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 When does 'bodily injury' occur for the purposes of public liability insurance in asbestos-related disease cases?
  2. 2 Which insurer is liable: the one on risk at time of exposure or at time of disease manifestation?
  3. 3 Does late notification to an insurer bar indemnity?

Ratio Decidendi

The insurer liable under a public liability policy for asbestos-related disease is the one on risk at the time the disease manifests or is diagnosable, not at the time of exposure. Notification conditions precedent must be complied with unless waived by inconsistent conduct, which was not found here. There was no double insurance or right to contribution between the insurers on these facts.

Court Disposition

All appeals dismissed except Bolton's appeal on costs, which is allowed.

Orders

  • MMI to indemnify Bolton for sums paid to Mr Green's estate and costs as against MMI.
  • Bolton's claim against CU dismissed; CU entitled to rely on late notification as a defence.