Goshawk Dedicated Ltd & Ors v Tyser & Co Ltd & Anor

Goshawk Dedicated Ltd & Ors v Tyser & Co Ltd & Anor

A term is to be implied into Lloyd’s insurance contracts that, where placing and claims documents previously shown to underwriters and premium accounting documents necessary to the contract are retained by brokers, such documents must be made available to underwriters on reasonable notice in case of reasonable necessity. This obligation is reflected in market practice and is necessary for the effective operation of the contract. A direct contract to this effect exists between underwriters and brokers, both pre- and post-TOBA. Post-TOBA, there is no conflict between clauses 8.1 and 2.2, as insureds have agreed to disclosure.

Parties
Appellants/claimants: Goshawk Dedicated Ltd (suing for and on behalf of all members of Lloyd's Syndicate 102 & 2021 for the 1999 year of account) and others; Respondents/defendants: Tyser & Co. Limited and another; Intervener: Council of Lloyd’s (intervening)
Jurisdiction
England and Wales
Judgment Date
07 February 2006
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Implied Terms, Broker Duties, Access to Documents, Market Practice, Confidentiality
Insurance Law Contract Law Implied Terms Broker Duties Access to Documents Market Practice Confidentiality

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Parties

Goshawk Dedicated Ltd (suing for and on behalf of all members of Lloyd's Syndicate 102 & 2021 for the 1999 year of account) and others

Appellants/claimants

Tyser & Co. Limited and another

Respondents/defendants

Council of Lloyd’s (intervening)

Intervener

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a term is to be implied into Lloyd’s insurance contracts entitling underwriters to re-inspect placing, claims, and accounting documents retained by brokers;
  2. 2 Whether a direct contract exists between underwriters and brokers for production of such documents, pre- and post-TOBA;
  3. 3 Whether clause 2.2 of TOBA overrides clause 8.1 regarding disclosure obligations.

Ratio Decidendi

A term is to be implied into Lloyd’s insurance contracts that, where placing and claims documents previously shown to underwriters and premium accounting documents necessary to the contract are retained by brokers, such documents must be made available to underwriters on reasonable notice in case of reasonable necessity. This obligation is reflected in market practice and is necessary for the effective operation of the contract. A direct contract to this effect exists between underwriters and brokers, both pre- and post-TOBA. Post-TOBA, there is no conflict between clauses 8.1 and 2.2, as insureds have agreed to disclosure.

Court Disposition

Appeal allowed

Orders

  • Declaration that brokers are obliged, on reasonable notice, to allow syndicates to inspect and copy the documents sought, subject to further elucidation regarding accounting documents if necessary.