PA (GI) Limited v Cigna Insurance Services (Europe) Limited

PA (GI) Limited v Cigna Insurance Services (Europe) Limited

The indemnities in the BTA and DWI, on their natural and ordinary meaning and in the commercial context, cover liabilities for mis-selling of PPI policies (excluding those arising from fraud or dishonesty), including reasonable and bona fide settlements and regulatory redress, unless expressly excluded. PAGI retains the right to claim under the indemnity for non-life mis-selling liabilities, except where such rights or liabilities were transferred under the 2005 Scheme (for life components). The 2011 Scheme did not transfer the relevant rights or liabilities. The indemnity does not extend to liabilities arising from fraud or dishonesty.

Parties
Claimant: PA (GI) Limited; Defendant: Cigna Insurance Services (Europe) Limited
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Commercial Contractual Indemnity Claim / Trial Judgment on Preliminary Issues of Contractual Construction and Indemnity Scope
Outcome
Liabilities for mis-selling of PPI policies (excluding fraud/dishonesty and life components transferred under the 2005 Scheme) are within the scope of the indemnities; PAGI entitled to claim under the indemnity for such liabilities; quantum and relief to be determined later.
Legal Topics
Contractual Interpretation, Indemnity Clauses, Business Transfer Agreements, Mis Selling Liability, Assignment of Contractual Rights, Third Party Rights, Insurance Business Transfers
Contract Law Insurance Law Commercial Law Contractual Interpretation Indemnity Clauses Business Transfer Agreements Mis Selling Liability Assignment of Contractual Rights +2 more

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Parties

PA (GI) Limited

Claimant

Cigna Insurance Services (Europe) Limited

Defendant

Procedural Posture

Commercial Contractual Indemnity Claim / Trial Judgment on Preliminary Issues of Contractual Construction and Indemnity Scope

Legal Issues

  1. 1 What is the scope of the indemnity under the Business Transfer Agreement (BTA)?
  2. 2 Does the indemnity cover liabilities for mis-selling of PPI policies?
  3. 3 Are liabilities for mis-selling excluded as Excluded Liabilities under the BTA?

Ratio Decidendi

The indemnities in the BTA and DWI, on their natural and ordinary meaning and in the commercial context, cover liabilities for mis-selling of PPI policies (excluding those arising from fraud or dishonesty), including reasonable and bona fide settlements and regulatory redress, unless expressly excluded. PAGI retains the right to claim under the indemnity for non-life mis-selling liabilities, except where such rights or liabilities were transferred under the 2005 Scheme (for life components). The 2011 Scheme did not transfer the relevant rights or liabilities. The indemnity does not extend to liabilities arising from fraud or dishonesty.

Court Disposition

Liabilities for mis-selling of PPI policies (excluding fraud/dishonesty and life components transferred under the 2005 Scheme) are within the scope of the indemnities; PAGI entitled to claim under the indemnity for such liabilities; quantum and relief to be determined later.

Orders

  • Declaration that the BTA and DWI indemnities cover non-life PPI mis-selling liabilities (excluding fraud/dishonesty and life components transferred under the 2005 Scheme)
  • Declaration that PAGI retains the right to claim under the indemnity for such liabilities