Aspen Insurance UK Ltd.v Adana Construction Ltd

Aspen Insurance UK Ltd.v Adana Construction Ltd

The pile cap/crane base and its components do not constitute a 'Product' under the policy; even if they did, there is no evidence they failed to fulfil their intended function or caused the loss. The Foundation Clause does not exclude liability for the crane collapse as 'superstructure' does not apply to a temporary crane. Adana is entitled to indemnity and Defence Costs under the policy.

Parties
Claimant: Aspen Insurance UK Limited; Defendant: Adana Construction Limited
Jurisdiction
England and Wales
Judgment Date
20 June 2013
Procedural Posture
Insurance Declaratory Action / Judgment After Trial
Outcome
Claimant's application for declaration refused; Defendant entitled to declaration of rights under the policy, terms to be considered.
Legal Topics
Public Liability Insurance, Product Liability Insurance, Policy Interpretation, Defence Costs, Construction Contracts
Insurance Law Construction Law Public Liability Insurance Product Liability Insurance Policy Interpretation Defence Costs Construction Contracts

Case Brief

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Parties

Aspen Insurance UK Limited

Claimant

Adana Construction Limited

Defendant

Procedural Posture

Insurance Declaratory Action / 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 arises from the failure of a Product to fulfil its intended function
  3. 3 Whether the Foundation Clause excludes liability for the crane collapse

Ratio Decidendi

The pile cap/crane base and its components do not constitute a 'Product' under the policy; even if they did, there is no evidence they failed to fulfil their intended function or caused the loss. The Foundation Clause does not exclude liability for the crane collapse as 'superstructure' does not apply to a temporary crane. Adana is entitled to indemnity and Defence Costs under the policy.

Court Disposition

Claimant's application for declaration refused; Defendant entitled to declaration of rights under the policy, terms to be considered.

Orders

  • Claimant's application for declaration refused
  • Court prepared to grant Defendant a declaration of rights under the policy, subject to drafting