Equity Syndicate Management Ltd v Glaxosmithkline Plc [2015] EWHC 2163 (Comm) (23 July 2015)

Equity Syndicate Management Ltd v Glaxosmithkline Plc [2015] EWHC 2163 (Comm) (23 July 2015)

The parties to the insurance contract (GSK and Equity) had a common continuing intention, objectively manifested, to limit cover to vehicles within the ECOS scheme. The wider wording in the certificate was a mutual mistake and did not reflect the true agreement. Rectification is granted to align the contract with the parties' actual intention, defeating AXA's claim for contribution.

Citation
[2015] EWHC 2163 (Comm)
Parties
Claimant: Equity Syndicate Management Limited; First Defendant: GlaxoSmithKline plc; Resisting Party/third Party: AXA
Jurisdiction
England and Wales
Judgment Date
23 July 2015
Procedural Posture
Commercial Court Insurance Contract Dispute / Judgment After Trial
Outcome
Equity's claim for rectification succeeds; AXA's claim for contribution is dismissed.
Legal Topics
Rectification of Contract, Double Insurance, Contribution Between Insurers, Interpretation of Insurance Policies
Insurance Law Contract Law Rectification of Contract Double Insurance Contribution Between Insurers Interpretation of Insurance Policies

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Parties

Equity Syndicate Management Limited

Claimant

GlaxoSmithKline plc

First Defendant

AXA

Resisting Party/third Party

Procedural Posture

Commercial Court Insurance Contract Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether the insurance contract between GSK and Equity should be rectified to limit cover to ECOS scheme vehicles only
  2. 2 Whether AXA is entitled to a contribution from Equity due to double insurance

Ratio Decidendi

The parties to the insurance contract (GSK and Equity) had a common continuing intention, objectively manifested, to limit cover to vehicles within the ECOS scheme. The wider wording in the certificate was a mutual mistake and did not reflect the true agreement. Rectification is granted to align the contract with the parties' actual intention, defeating AXA's claim for contribution.

Court Disposition

Equity's claim for rectification succeeds; AXA's claim for contribution is dismissed.

Orders

  • The certificate of insurance is rectified to limit cover to vehicles within the ECOS scheme only.
  • AXA's claim for contribution against Equity is dismissed.