Brit UW Ltd v F & B Trenchless Solutions Ltd

Brit UW Ltd v F & B Trenchless Solutions Ltd

Brit validly avoided the policy for material non-disclosure and misrepresentation. FBTS failed to disclose significant earth settlement and the appearance of a void, both of which deviated materially from the predicted settlement and were material to the risk. FBTS also misrepresented that it did not tunnel under active railway lines, which was false and material. Brit was induced by these non-disclosures and misrepresentations to write the risk on the terms it did. There was no affirmation by Brit; Brit reserved its rights promptly and unequivocally. FBTS’s counterclaim is dismissed.

Parties
Claimant: Brit UW Limited (on behalf of Brit Syndicate 2987 at Lloyd's); Defendant: F & B Trenchless Solutions Limited
Jurisdiction
England and Wales
Judgment Date
31 July 2015
Procedural Posture
Commercial Insurance Dispute / Judgment After Trial
Outcome
Claim allowed; counterclaim dismissed
Legal Topics
Material Non Disclosure, Misrepresentation, Inducement, Affirmation of Insurance Policy, Duty of Utmost Good Faith
Insurance Law Contract Law Material Non Disclosure Misrepresentation Inducement Affirmation of Insurance Policy Duty of Utmost Good Faith

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Parties

Brit UW Limited (on behalf of Brit Syndicate 2987 at Lloyd's)

Claimant

F & B Trenchless Solutions Limited

Defendant

Procedural Posture

Commercial Insurance Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether FBTS failed to disclose material facts prior to conclusion of the insurance policy
  2. 2 Whether FBTS made a material misrepresentation regarding tunnelling under active railway lines
  3. 3 Whether Brit was induced to enter the contract by non-disclosure or misrepresentation

Ratio Decidendi

Brit validly avoided the policy for material non-disclosure and misrepresentation. FBTS failed to disclose significant earth settlement and the appearance of a void, both of which deviated materially from the predicted settlement and were material to the risk. FBTS also misrepresented that it did not tunnel under active railway lines, which was false and material. Brit was induced by these non-disclosures and misrepresentations to write the risk on the terms it did. There was no affirmation by Brit; Brit reserved its rights promptly and unequivocally. FBTS’s counterclaim is dismissed.

Court Disposition

Claim allowed; counterclaim dismissed

Orders

  • Declaration that Brit validly avoided the policy ab initio
  • FBTS’s counterclaim for indemnity and damages dismissed