Scott v Copenhagen Reinsurance Company (UK) Ltd. [2003] EWCA Civ 688 (16 May 2003)

Scott v Copenhagen Reinsurance Company (UK) Ltd. [2003] EWCA Civ 688 (16 May 2003)

The loss of the BA aircraft did not arise from the same event as the KAC aircraft and spares. The BA aircraft was not a target of the invasion, was only stranded, and its loss resulted from subsequent events, notably the outbreak of war and its destruction during Operation Desert Storm. There was no unity of intent, time, or cause between the KAC and BA losses. The aggregation clause's requirement of losses 'arising from one event' was not satisfied.

Citation
[2003] EWCA Civ 688
Parties
Claimant/appellant: Murray Arnold Campbell Scott (for and behalf of all Underwriting Members of Syndicates 401 and 857 at Lloyd's); Defendant/respondent: The Copenhagen Reinsurance Company (UK) Ltd
Jurisdiction
England and Wales
Judgment Date
16 May 2003
Procedural Posture
Appeal From Queen's Bench Division, Commercial Court / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Reinsurance, Aggregation Clauses, Actual Total Loss, Causation in Insurance, Aviation Insurance
Insurance Law Contract Law Reinsurance Aggregation Clauses Actual Total Loss Causation in Insurance Aviation Insurance

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Parties

Murray Arnold Campbell Scott (for and behalf of all Underwriting Members of Syndicates 401 and 857 at Lloyd's)

Claimant/appellant

The Copenhagen Reinsurance Company (UK) Ltd

Defendant/respondent

Procedural Posture

Appeal From Queen's Bench Division, Commercial Court / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the loss of the British Airways aircraft should be aggregated with the losses of the Kuwait Airways Corporation aircraft and spares as arising from 'one event' under the reinsurance policy.
  2. 2 Whether the causal connection required by 'arising from one event' is satisfied in the circumstances of the BA aircraft's loss.

Ratio Decidendi

The loss of the BA aircraft did not arise from the same event as the KAC aircraft and spares. The BA aircraft was not a target of the invasion, was only stranded, and its loss resulted from subsequent events, notably the outbreak of war and its destruction during Operation Desert Storm. There was no unity of intent, time, or cause between the KAC and BA losses. The aggregation clause's requirement of losses 'arising from one event' was not satisfied.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the loss of the BA aircraft is not to be aggregated with the KAC aircraft and spares under the reinsurance policy.