Dunlop Haywards (DHL) & Anor v Erinaceous Insurance Services Ltd & Ors

Dunlop Haywards (DHL) & Anor v Erinaceous Insurance Services Ltd & Ors

The Court of Appeal held that the judge erred in summarily rejecting the rectification claim and refusing joinder of the excess insurers. There was a good arguable case on rectification and construction that should be tried with all relevant parties present. It was desirable under CPR 19.2(2) to join the excess insurers so that all issues could be resolved and all parties bound by the outcome.

Parties
Claimant: Dunlop Haywards (DHL) Limited; Claimant: Erinaceous Commercial Property Services Limited; Defendant/appellant: Erinaceous Insurance Services Limited; Part 20 Defendant: Lockton Companies International Limited; Intended Part 20 Defendants/respondents: MSI Corporate Capital Limited and Others (Excess Insurers)
Jurisdiction
England and Wales
Judgment Date
28 April 2009
Procedural Posture
Civil Appeal / Interlocutory Appeal From Commercial Court Decision on Joinder of Parties
Outcome
Appeal allowed
Legal Topics
Rectification of Contract, Joinder of Parties, Professional Indemnity Insurance, Construction of Insurance Contracts
Insurance Law Civil Procedure Rectification of Contract Joinder of Parties Professional Indemnity Insurance Construction of Insurance Contracts

Case Brief

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Parties

Dunlop Haywards (DHL) Limited

Claimant

Erinaceous Commercial Property Services Limited

Claimant

Erinaceous Insurance Services Limited

Defendant/appellant

Lockton Companies International Limited

Part 20 Defendant

MSI Corporate Capital Limited and Others (Excess Insurers)

Intended Part 20 Defendants/respondents

Procedural Posture

Civil Appeal / Interlocutory Appeal From Commercial Court Decision on Joinder of Parties

Legal Issues

  1. 1 Whether it is desirable under CPR 19.2(2) to join excess insurers as parties to proceedings for the purposes of rectification and construction of an insurance policy
  2. 2 Whether the claim for rectification of the excess insurance policy has a real prospect of success
  3. 3 Whether the construction arguments regarding the scope of cover under the excess policy have a real prospect of success

Ratio Decidendi

The Court of Appeal held that the judge erred in summarily rejecting the rectification claim and refusing joinder of the excess insurers. There was a good arguable case on rectification and construction that should be tried with all relevant parties present. It was desirable under CPR 19.2(2) to join the excess insurers so that all issues could be resolved and all parties bound by the outcome.

Court Disposition

Appeal allowed

Orders

  • Excess insurers to be joined as parties for the purposes of the rectification and construction issues
  • Appropriate case management directions to follow