Gard Marine & Energy Ltd. v Tunnicliffe & Ors [2011] EWHC 1658 (Comm) (30 June 2011)

Gard Marine & Energy Ltd. v Tunnicliffe & Ors [2011] EWHC 1658 (Comm) (30 June 2011)

'(100%)' in the context of the excess or limit in the reinsurance policy has a recognised and established meaning in the energy insurance and reinsurance market: it means the limit or excess scales to reflect the assured's interest in the relevant assets. The excess point in the Sum Insured clause is based on the total insured value of the original lost asset, not just Devon's interest, and thus must scale for interest.

Citation
[2011] EWHC 1658 (Comm)
Parties
Claimant: Gard Marine & Energy Limited; First Defendant: Lloyd Tunnicliffe (on behalf of all other members of Lloyd's Syndicate 780 for the 2005 year); Second Defendant: Glacier Reinsurance AG; Third Defendant: Agnew Higgins Pickering & Company Limited
Jurisdiction
England and Wales
Judgment Date
30 June 2011
Procedural Posture
Commercial Court Claim / Judgment After Trial
Outcome
Claim allowed; counterclaim dismissed
Legal Topics
Reinsurance, Policy Construction, Market Practice, Misrepresentation, Broker Duties
Insurance Law Contract Law Reinsurance Policy Construction Market Practice Misrepresentation Broker Duties

Case Brief

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Parties

Gard Marine & Energy Limited

Claimant

Lloyd Tunnicliffe (on behalf of all other members of Lloyd's Syndicate 780 for the 2005 year)

First Defendant

Glacier Reinsurance AG

Second Defendant

Agnew Higgins Pickering & Company Limited

Third Defendant

Procedural Posture

Commercial Court Claim / Judgment After Trial

Legal Issues

  1. 1 What is the meaning of '(100%)' in the context of an excess or limit in an energy facultative reinsurance policy?
  2. 2 Does the excess point in the Sum Insured clause scale for interest or is it fixed?
  3. 3 Were there actionable misrepresentations by the broker during placement justifying avoidance of the reinsurance contract?

Ratio Decidendi

'(100%)' in the context of the excess or limit in the reinsurance policy has a recognised and established meaning in the energy insurance and reinsurance market: it means the limit or excess scales to reflect the assured's interest in the relevant assets. The excess point in the Sum Insured clause is based on the total insured value of the original lost asset, not just Devon's interest, and thus must scale for interest.

Court Disposition

Claim allowed; counterclaim dismissed

Orders

  • Advent is liable to Gard for the scaled indemnity under the reinsurance policy.
  • Advent's claim for avoidance based on misrepresentation is rejected.