Sutherland Professional Funding Ltd v Bakewells (a firm) & Ors [2011] EWHC 2658 (QB) (27 September 2011)

Sutherland Professional Funding Ltd v Bakewells (a firm) & Ors [2011] EWHC 2658 (QB) (27 September 2011)

Bakewells' liability to Sutherland under clause 5.1 of the Agreement is not a civil liability arising from private legal practice within the meaning of the professional indemnity insurance policies, but is a business liability arising from a guarantee or indemnity in connection with the provision of finance. The claim is therefore excluded from cover by the trade debts exclusion in both the AIG and RSA policies.

Citation
[2011] EWHC 2658 (QB)
Parties
Claimant: Sutherland Professional Funding Limited; Defendant and Part 20 Claimant: Bakewells (a Firm); Defendant and Part 20 Claimant: Mark Cadell Collins; Defendant and Part 20 Claimant: Martin Gerard Jinks; Defendant and Part 20 Claimant: Andrew Robert Murfin; Third Party: Chartis Insurance (UK) Limited; Fourth Party: Royal & Sun Alliance Insurance PLC
Jurisdiction
England and Wales
Judgment Date
27 September 2011
Procedural Posture
Part 20 Proceedings (insurance Coverage Dispute) / Judgment on Preliminary Issues
Outcome
Coverage denied; claim excluded under trade debts exclusion.
Legal Topics
Solicitors' Professional Indemnity Insurance, Trade Debts Exclusion, Scope of Civil Liability Cover, Guarantee and Indemnity, Conditional Fee Agreements, After the Event (ate) Insurance, Third Party Claims
Insurance Law Contract Law Professional Negligence Solicitors' Professional Indemnity Insurance Trade Debts Exclusion Scope of Civil Liability Cover Guarantee and Indemnity Conditional Fee Agreements +2 more

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Parties

Sutherland Professional Funding Limited

Claimant

Bakewells (a Firm)

Defendant and Part 20 Claimant

Mark Cadell Collins

Defendant and Part 20 Claimant

Martin Gerard Jinks

Defendant and Part 20 Claimant

Andrew Robert Murfin

Defendant and Part 20 Claimant

Chartis Insurance (UK) Limited

Third Party

Royal & Sun Alliance Insurance PLC

Fourth Party

Procedural Posture

Part 20 Proceedings (insurance Coverage Dispute) / Judgment on Preliminary Issues

Legal Issues

  1. 1 Whether Bakewells' liability to Sutherland arises from private legal practice for the purposes of professional indemnity insurance policies
  2. 2 Whether Sutherland's claim constitutes a 'Claim' under the AIG and RSA policies
  3. 3 Whether the trade debts exclusion applies to exclude cover for Bakewells' liability to Sutherland

Ratio Decidendi

Bakewells' liability to Sutherland under clause 5.1 of the Agreement is not a civil liability arising from private legal practice within the meaning of the professional indemnity insurance policies, but is a business liability arising from a guarantee or indemnity in connection with the provision of finance. The claim is therefore excluded from cover by the trade debts exclusion in both the AIG and RSA policies.

Court Disposition

Coverage denied; claim excluded under trade debts exclusion.

Orders

  • Bakewells and the individual partners are not entitled to an indemnity from Chartis or RSA in respect of Sutherland's claim under the relevant professional indemnity insurance policies.