Lonham Group Ltd v Scotbeef Ltd & Anor [2025] EWCA Civ 203 (05 March 2025)

Lonham Group Ltd v Scotbeef Ltd & Anor [2025] EWCA Civ 203 (05 March 2025)

The Court of Appeal held that the judge below erred by treating the relevant policy sub-clauses collectively as representations rather than analysing them individually. Sub-clauses (ii) and (iii) were properly construed as warranties and conditions precedent. DS breached these warranties by not contracting with Scotbeef on the declared terms, entitling Lonham to avoid liability under the policy. The transparency requirements were not satisfied, but actual knowledge of the terms by DS was established. Accordingly, Lonham was not liable to indemnify DS or Scotbeef.

Citation
[2025] EWCA Civ 203
Parties
Appellant: Lonham Group Limited; First Respondent: Scotbeef Limited; Second Respondent: D&S Storage Limited (In Liquidation)
Jurisdiction
England and Wales
Judgment Date
05 March 2025
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (technology and Construction Court)
Outcome
Appeal allowed; judgment below set aside.
Legal Topics
Insurance Act 2015, Warranties and Representations, Third Parties (rights Against Insurers) Act 2010, Fair Presentation of Risk, Conditions Precedent, Transparency Requirements
Insurance Law Contract Law Commercial Law Insurance Act 2015 Warranties and Representations Third Parties (rights Against Insurers) Act 2010 Fair Presentation of Risk Conditions Precedent +1 more

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Parties

Lonham Group Limited

Appellant

Scotbeef Limited

First Respondent

D&S Storage Limited (In Liquidation)

Second Respondent

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (technology and Construction Court)

Legal Issues

  1. 1 Whether the information provided by DS to Lonham regarding trading terms constituted warranties or representations under the Insurance Act 2015
  2. 2 Whether breach of the relevant policy terms entitled Lonham to avoid liability to indemnify DS (and thus Scotbeef)
  3. 3 Whether the policy terms satisfied the transparency requirements under sections 16 and 17 of the Insurance Act 2015

Ratio Decidendi

The Court of Appeal held that the judge below erred by treating the relevant policy sub-clauses collectively as representations rather than analysing them individually. Sub-clauses (ii) and (iii) were properly construed as warranties and conditions precedent. DS breached these warranties by not contracting with Scotbeef on the declared terms, entitling Lonham to avoid liability under the policy. The transparency requirements were not satisfied, but actual knowledge of the terms by DS was established. Accordingly, Lonham was not liable to indemnify DS or Scotbeef.

Court Disposition

Appeal allowed; judgment below set aside.

Orders

  • Declaration that Lonham is not liable to indemnify DS or Scotbeef under the relevant insurance policy.
  • No order as to costs against the Second Respondent (D&S Storage Limited).