Outokumpu Stainless Ltd v AXA Global Risks (UK) Ltd & Ors

Outokumpu Stainless Ltd v AXA Global Risks (UK) Ltd & Ors

The radioactive contamination memorandum does not extend cover to pure economic loss or disposal costs of contaminated material; it only reinstates cover for direct physical loss or damage to property caused by radioactive contamination, which would otherwise be excluded. The policy remains a traditional property damage policy, and the extension does not alter its fundamental nature.

Parties
Claimant: Outokumpu Stainless Limited; Defendant: AXA Global Risks (UK) Limited; Defendant: Allianz Cornhill Insurance PLC; Defendant: Chubb Insurance Company of Europe S.A.; Defendant: Reliance National Insurance Company (Europe) Limited; Defendant: Guardian Insurance Limited; Defendant: Minster Insurance Company Limited; Defendant: SCOR UK Company Limited; Defendant: Hampden Insurance NV; Defendant: CAN Insurance Company (Europe) Limited; Defendant: Copenhagen Reinsurance Company (UK) Limited; Defendant: Zurich International (UK) Limited; Defendant: AXA Reinsurance UK PLC
Jurisdiction
England and Wales
Judgment Date
08 November 2007
Procedural Posture
Commercial Insurance Coverage Dispute / Judgment After Trial
Outcome
Claim dismissed (costs of disposal not recoverable under the policy)
Legal Topics
Policy Interpretation, Property Damage Insurance, Radioactive Contamination, Exclusions and Extensions in Insurance Policies
Insurance Law Contract Law Policy Interpretation Property Damage Insurance Radioactive Contamination Exclusions and Extensions in Insurance Policies

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 2 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Outokumpu Stainless Limited

Claimant

AXA Global Risks (UK) Limited

Defendant

Allianz Cornhill Insurance PLC

Defendant

Chubb Insurance Company of Europe S.A.

Defendant

Reliance National Insurance Company (Europe) Limited

Defendant

Guardian Insurance Limited

Defendant

Minster Insurance Company Limited

Defendant

SCOR UK Company Limited

Defendant

Hampden Insurance NV

Defendant

CAN Insurance Company (Europe) Limited

Defendant

Copenhagen Reinsurance Company (UK) Limited

Defendant

Zurich International (UK) Limited

Defendant

AXA Reinsurance UK PLC

Defendant

Procedural Posture

Commercial Insurance Coverage Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether the costs incurred by the claimant in disposing of radioactive contaminated slag are recoverable under the property damage insurance policy.
  2. 2 Proper construction of the radioactive contamination memorandum in the insurance policy.

Ratio Decidendi

The radioactive contamination memorandum does not extend cover to pure economic loss or disposal costs of contaminated material; it only reinstates cover for direct physical loss or damage to property caused by radioactive contamination, which would otherwise be excluded. The policy remains a traditional property damage policy, and the extension does not alter its fundamental nature.

Court Disposition

Claim dismissed (costs of disposal not recoverable under the policy)