Channon (t/a Channon & Co) v Ward [2015] EWHC 4256 (QB) (12 May 2015)

Channon (t/a Channon & Co) v Ward [2015] EWHC 4256 (QB) (12 May 2015)

The insurer would have certainly relied on policy exclusions relating to warranties/guarantees of investment returns and trading losses/liabilities of a business managed by the insured, and would have refused indemnity. The claimant was not acting in the course of his business as an accountant but as a director of a property development company. Therefore, the defendant's failure to obtain insurance did not cause recoverable loss, as no indemnity would have been provided.

Citation
[2015] EWHC 4256 (QB)
Parties
Claimant: Rodney Channon (t/a Channon & Co); Defendant: John Ward
Jurisdiction
England and Wales
Judgment Date
12 May 2015
Procedural Posture
Professional Negligence Claim / Judgment After Default, Determination of Causation and Quantum
Outcome
Claim dismissed
Legal Topics
Professional Indemnity Insurance, Policy Exclusions, Causation of Loss, Settlement Agreements, Director Liability
Insurance Law Professional Negligence Contract Law Professional Indemnity Insurance Policy Exclusions Causation of Loss Settlement Agreements Director Liability

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Parties

Rodney Channon (t/a Channon & Co)

Claimant

John Ward

Defendant

Procedural Posture

Professional Negligence Claim / Judgment After Default, Determination of Causation and Quantum

Legal Issues

  1. 1 Whether the defendant's failure to obtain professional indemnity insurance caused recoverable loss to the claimant
  2. 2 Whether an insurer would have indemnified the claimant against claims by investors
  3. 3 Application of policy exclusions to the facts

Ratio Decidendi

The insurer would have certainly relied on policy exclusions relating to warranties/guarantees of investment returns and trading losses/liabilities of a business managed by the insured, and would have refused indemnity. The claimant was not acting in the course of his business as an accountant but as a director of a property development company. Therefore, the defendant's failure to obtain insurance did not cause recoverable loss, as no indemnity would have been provided.

Court Disposition

Claim dismissed

Orders

  • No damages awarded to claimant
  • Claimant not entitled to indemnity for losses arising from investors' claims