Equity Syndicate Management Ltd v Glaxosmithkline Plc

Equity Syndicate Management Ltd v Glaxosmithkline Plc

The parties to the insurance contract (GSK and Equity) had a common, objectively manifested intention to limit cover to ECOS vehicles only, as shown by the premium structure and negotiations; the wider certificate wording was a mutual mistake, and rectification is warranted to reflect the true agreement, defeating AXA's claim for contribution.

Parties
Claimant: Equity Syndicate Management Limited; First Defendant: GlaxoSmithKline PLC; Second Defendant / Claimant (in Contribution Claim): AXA Corporate Solutions Assurance SA; Defendant (in Contribution Claim): John Josiah and Keith Charlton (as representatives for members subscribing to Equity Red Star Syndicate at Lloyds for the year of account 2006-2007)
Jurisdiction
England and Wales
Judgment Date
23 July 2015
Procedural Posture
Civil (insurance/commercial) / Judgment After Trial of Consolidated Actions (rectification and Contribution)
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 Commercial 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 Corporate Solutions Assurance SA

Second Defendant / Claimant (in Contribution Claim)

John Josiah and Keith Charlton (as representatives for members subscribing to Equity Red Star Syndicate at Lloyds for the year of account 2006-2007)

Defendant (in Contribution Claim)

Procedural Posture

Civil (insurance/commercial) / Judgment After Trial of Consolidated Actions (rectification and Contribution)

Legal Issues

  1. 1 Whether the insurance contract between GSK and Equity should be rectified to limit cover to ECOS vehicles only
  2. 2 Whether AXA is entitled to a 50% contribution from Equity for settlement of Ms Ball's liability

Ratio Decidendi

The parties to the insurance contract (GSK and Equity) had a common, objectively manifested intention to limit cover to ECOS vehicles only, as shown by the premium structure and negotiations; the wider certificate wording was a mutual mistake, and rectification is warranted to reflect the true agreement, defeating AXA's claim for contribution.

Court Disposition

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

Orders

  • The insurance certificate is rectified to limit cover to vehicles within the ECOS scheme.
  • AXA's claim for a 50% contribution from Equity is dismissed.