Palliser Ltd v Fate Ltd & Ors [2019] EWHC 43 (QB) (16 January 2019)

Palliser Ltd v Fate Ltd & Ors [2019] EWHC 43 (QB) (16 January 2019)

Section 6 of the insurance policy does not cover Fate's liability for damage to the upper floors, as 'property not belonging to you' excludes property of which Fate is the freehold owner. The Berni Inns defence, even if applicable, is subject to a qualification: it does not exclude liability to the extent the landlord has underinsured. Palliser failed to prove its loss of profits claim to the required standard; the claim was speculative and unsupported by credible evidence.

Citation
[2019] EWHC 43 (QB)
Parties
Claimant: Palliser Limited; First Defendant: Fate Limited (in liquidation); Second Defendant: The National Insurance and Guarantee Corporation Limited; Third Defendant: UK Insurance Limited
Jurisdiction
England and Wales
Judgment Date
16 January 2019
Procedural Posture
Claim Under the Third Parties (rights Against Insurers) Act 2010 / High Court Trial Judgment
Outcome
Claim dismissed except for £8,500 refurbishment costs
Legal Topics
Third Party Rights Against Insurers, Interpretation of Insurance Policies, Landlord's Liability in Negligence, Implied Exclusion of Liability, Quantum of Damages
Insurance Law Landlord and Tenant Tort Law Third Party Rights Against Insurers Interpretation of Insurance Policies Landlord's Liability in Negligence Implied Exclusion of Liability Quantum of Damages

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Parties

Palliser Limited

Claimant

Fate Limited (in liquidation)

First Defendant

The National Insurance and Guarantee Corporation Limited

Second Defendant

UK Insurance Limited

Third Defendant

Procedural Posture

Claim Under the Third Parties (rights Against Insurers) Act 2010 / High Court Trial Judgment

Legal Issues

  1. 1 Whether section 6 of the insurance policy covers liability for damage to property not belonging to Fate
  2. 2 Whether the Berni Inns defence applies to exclude Fate's liability to Palliser for refurbishment costs
  3. 3 Whether Palliser is entitled to loss of profits as damages

Ratio Decidendi

Section 6 of the insurance policy does not cover Fate's liability for damage to the upper floors, as 'property not belonging to you' excludes property of which Fate is the freehold owner. The Berni Inns defence, even if applicable, is subject to a qualification: it does not exclude liability to the extent the landlord has underinsured. Palliser failed to prove its loss of profits claim to the required standard; the claim was speculative and unsupported by credible evidence.

Court Disposition

Claim dismissed except for £8,500 refurbishment costs

Orders

  • Claim for refurbishment costs allowed in part: £8,500 awarded to Palliser
  • All other claims dismissed