Aspen Insurance UK Ltd.v Adana Construction Ltd [2013] EWHC 1568 (Comm) (20 June 2013)

Aspen Insurance UK Ltd.v Adana Construction Ltd [2013] EWHC 1568 (Comm) (20 June 2013)

The pile cap/crane base and its components do not constitute a 'Product' within the meaning of the policy. Even if they did, there is no evidence that they failed to fulfil their intended function or caused the loss. The Foundation Clause does not exclude liability for the crane collapse. The insured is entitled to indemnity under the policy. The claim for a negative declaration by the insurer fails.

Citation
[2013] EWHC 1568 (Comm)
Parties
Claimant: Aspen Insurance UK Limited; Defendant: Adana Construction Limited
Jurisdiction
England and Wales
Judgment Date
20 June 2013
Procedural Posture
Commercial Insurance Declaratory Action / First Instance Judgment After Trial
Outcome
Claimant's application for declaration refused; Defendant entitled to declaration of cover under the policy.
Legal Topics
Public Liability Insurance, Product Liability Insurance, Policy Interpretation, Declaratory Relief, Defence Costs, Construction Defects
Insurance Law Construction Law Public Liability Insurance Product Liability Insurance Policy Interpretation Declaratory Relief Defence Costs Construction Defects

Case Brief

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Parties

Aspen Insurance UK Limited

Claimant

Adana Construction Limited

Defendant

Procedural Posture

Commercial Insurance Declaratory Action / First Instance Judgment After Trial

Legal Issues

  1. 1 Whether the pile cap/crane base or its components constitute a 'Product' under the policy
  2. 2 Whether any liability would be excluded by the policy's Foundation Clause or Product Liability exclusions
  3. 3 Whether the insured is entitled to indemnity and defence costs under the policy

Ratio Decidendi

The pile cap/crane base and its components do not constitute a 'Product' within the meaning of the policy. Even if they did, there is no evidence that they failed to fulfil their intended function or caused the loss. The Foundation Clause does not exclude liability for the crane collapse. The insured is entitled to indemnity under the policy. The claim for a negative declaration by the insurer fails.

Court Disposition

Claimant's application for declaration refused; Defendant entitled to declaration of cover under the policy.

Orders

  • Claimant's application for negative declaration dismissed.
  • Court prepared to grant Defendant a declaration of rights under the policy, subject to final terms.