Brit Syndicates Ltd & Ors v Italaudit SPA & Anor

Brit Syndicates Ltd & Ors v Italaudit SPA & Anor

Extension 3 is descriptive and not conditional upon effective cover for the member firm. GTI is entitled to cover if sued on a claim arising from a claim against a member firm named in the schedule, regardless of avoidance of that member firm’s insurance. The composite nature of the policy means GTI’s cover is not affected by avoidance against GT Italy.

Parties
Claimant: Brit Syndicates Limited for and on behalf of Brit Syndicate 2987 at Lloyd’s for the 2003 Year of Account; Claimant: Hiscox Dedicated Corporate Member Limited acting on their own behalf and on behalf of all members of Hiscox Syndicate 33 for the 2003 Year of Account; Claimant: Liberty Syndicate Management Limited for and on behalf of Liberty Syndicate 190 at Lloyd’s for the 2003 Year of Account; Claimant: Faraday Underwriting Limited for and on behalf of Syndicate 435 at Lloyd’s for the 2003 Year of Account; Defendant: Italaudit S.p.A. (in liquidation) (formerly Grant Thornton S.p.A.); Defendant: Grant Thornton International
Jurisdiction
England and Wales
Judgment Date
03 March 2006
Procedural Posture
Commercial Insurance Dispute / Summary Judgment
Outcome
GTI’s application for summary judgment granted; Brit’s application dismissed.
Legal Topics
Policy Avoidance, Breach of Warranty, Professional Indemnity Insurance, Composite Insurance, Policy Construction
Insurance Law Contract Law Policy Avoidance Breach of Warranty Professional Indemnity Insurance Composite Insurance Policy Construction

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Parties

Brit Syndicates Limited for and on behalf of Brit Syndicate 2987 at Lloyd’s for the 2003 Year of Account

Claimant

Hiscox Dedicated Corporate Member Limited acting on their own behalf and on behalf of all members of Hiscox Syndicate 33 for the 2003 Year of Account

Claimant

Liberty Syndicate Management Limited for and on behalf of Liberty Syndicate 190 at Lloyd’s for the 2003 Year of Account

Claimant

Faraday Underwriting Limited for and on behalf of Syndicate 435 at Lloyd’s for the 2003 Year of Account

Claimant

Italaudit S.p.A. (in liquidation) (formerly Grant Thornton S.p.A.)

Defendant

Grant Thornton International

Defendant

Procedural Posture

Commercial Insurance Dispute / Summary Judgment

Legal Issues

  1. 1 Whether avoidance of insurance for a member firm (GT Italy) under a composite professional indemnity policy precludes cover for Grant Thornton International (GTI) under Extension 3 of the policy
  2. 2 Whether Extension 3 is descriptive or conditional upon effective cover for the member firm
  3. 3 Effect of breach of warranty versus non-disclosure on policy coverage

Ratio Decidendi

Extension 3 is descriptive and not conditional upon effective cover for the member firm. GTI is entitled to cover if sued on a claim arising from a claim against a member firm named in the schedule, regardless of avoidance of that member firm’s insurance. The composite nature of the policy means GTI’s cover is not affected by avoidance against GT Italy.

Court Disposition

GTI’s application for summary judgment granted; Brit’s application dismissed.

Orders

  • Summary judgment for Grant Thornton International (GTI) against Brit Syndicates Limited.
  • Brit’s application for summary judgment dismissed.