AIG Europe Ltd v Oc320301 LLP & Ors

AIG Europe Ltd v Oc320301 LLP & Ors

The correct construction of the aggregation clause in the MTC requires that the matters or transactions have an intrinsic relationship with each other for aggregation to occur. The High Court was wrong to require dependency, but any connection, however remote, is insufficient. The case is remitted for factual determination of whether such intrinsic relationship exists between the transactions giving rise to the Underlying Claims.

Parties
Appellant: AIG Europe Limited; 1st Respondent: OC320301 LLP (formerly The International Law Partnership LLP); 2nd Respondent: Stephen John Howell; 3rd Respondent: Janine Elspeth Howell; 4th Respondent: Peter Gerard Jason Esders; 5th Respondent: Richard Marcus Woodman; 6th Respondent: Royds Trustee Company Limited (as trustees of the Howell Peninsula Protection Trust and the Midas Marrakech Trust and as representatives of the Beneficiaries); Intervener: The Law Society of England and Wales (acting in its regulatory capacity as the Solicitors Regulatory Authority)
Jurisdiction
England and Wales
Judgment Date
14 April 2016
Procedural Posture
Civil Appeal / Appeal From High Court, Remitted for Re Trial
Outcome
Appeal allowed in part; case remitted for re-trial
Legal Topics
Aggregation Clauses, Solicitors' Indemnity Insurance, Interpretation of Insurance Contracts
Insurance Law Professional Negligence Aggregation Clauses Solicitors' Indemnity Insurance Interpretation of Insurance Contracts

Case Brief

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Parties

AIG Europe Limited

Appellant

OC320301 LLP (formerly The International Law Partnership LLP)

1st Respondent

Stephen John Howell

2nd Respondent

Janine Elspeth Howell

3rd Respondent

Peter Gerard Jason Esders

4th Respondent

Richard Marcus Woodman

5th Respondent

Royds Trustee Company Limited (as trustees of the Howell Peninsula Protection Trust and the Midas Marrakech Trust and as representatives of the Beneficiaries)

6th Respondent

The Law Society of England and Wales (acting in its regulatory capacity as the Solicitors Regulatory Authority)

Intervener

Procedural Posture

Civil Appeal / Appeal From High Court, Remitted for Re Trial

Legal Issues

  1. 1 Proper construction of the aggregation clause in solicitors’ indemnity insurance policies under the Minimum Terms and Conditions (MTC)
  2. 2 Whether the Underlying Claims constitute 'One Claim' for the purposes of the aggregation clause
  3. 3 Degree of relatedness required between matters or transactions for aggregation

Ratio Decidendi

The correct construction of the aggregation clause in the MTC requires that the matters or transactions have an intrinsic relationship with each other for aggregation to occur. The High Court was wrong to require dependency, but any connection, however remote, is insufficient. The case is remitted for factual determination of whether such intrinsic relationship exists between the transactions giving rise to the Underlying Claims.

Court Disposition

Appeal allowed in part; case remitted for re-trial

Orders

  • Paragraphs 1-3 of the Order of Teare J dated 14 August 2015 set aside.
  • Action remitted to the Commercial Court for re-trial in accordance with the Court of Appeal's guidance.