Gard Marine & Energy Ltd. v Tunnicliffe & Ors

Gard Marine & Energy Ltd. v Tunnicliffe & Ors

'(100%)' in the context of the excess or limit in the reinsurance policy has a recognised and established meaning in the energy insurance market: it means the limit or excess scales to reflect the assured’s interest in the relevant assets. The Sum Insured clause is based on the total insured value of the original lost asset, not just Devon’s interest. There was no misrepresentation by the broker during placement.

Parties
Claimant: Gard Marine & Energy Limited; First Defendant: Lloyd Tunnicliffe (on his behalf and 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 (insurance/reinsurance) / Judgment After Trial
Outcome
Claim allowed; counterclaim for avoidance dismissed.
Legal Topics
Reinsurance Contract Construction, Market Practice in Insurance, Misrepresentation in Insurance Placement
Insurance Law Contract Law Reinsurance Contract Construction Market Practice in Insurance Misrepresentation in Insurance Placement

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 4 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Gard Marine & Energy Limited

Claimant

Lloyd Tunnicliffe (on his behalf and 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 (insurance/reinsurance) / 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 misrepresentations made by the broker during placement justifying avoidance of the 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 market: it means the limit or excess scales to reflect the assured’s interest in the relevant assets. The Sum Insured clause is based on the total insured value of the original lost asset, not just Devon’s interest. There was no misrepresentation by the broker during placement.

Court Disposition

Claim allowed; counterclaim for avoidance dismissed.

Orders

  • Declaration that the excess point in the Sum Insured clause scales for interest as contended by Gard and AHP.
  • Advent liable to pay the indemnity due to Gard calculated on the scaling basis.