Lonham Group Limited v Scotbeef Limited & Anor

Lonham Group Limited v Scotbeef Limited & Anor

Sub-clauses (ii) and (iii) of the Duty of Assured Clause are warranties and conditions precedent, not representations. DS breached these warranties by contracting with Scotbeef on terms not declared to Lonham. Under section 10(2) of the Insurance Act 2015, Lonham is entitled to avoid liability for losses occurring after the breach. The transparency requirements in sections 16 and 17 do not apply as the policy does not attempt to contract out of the statutory protections.

Parties
Appellant: Lonham Group Limited; First Respondent: Scotbeef Limited; Second Respondent: D&S Storage Limited (in liquidation)
Jurisdiction
England and Wales
Judgment Date
03 May 2025
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Insurance Act 2015, Representations and Warranties, Conditions Precedent, Transparency Requirements, Third Party Rights Against Insurers
Insurance Law Contract Law Insurance Act 2015 Representations and Warranties Conditions Precedent Transparency Requirements Third Party Rights Against Insurers

Case Brief

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Parties

Lonham Group Limited

Appellant

Scotbeef Limited

First Respondent

D&S Storage Limited (in liquidation)

Second Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether sub-clauses (ii) and (iii) of the Duty of Assured Clause are warranties or representations under the Insurance Act 2015
  2. 2 Whether breach of these clauses entitles the insurer to avoid liability
  3. 3 Whether transparency requirements under sections 16 and 17 of the Insurance Act 2015 apply

Ratio Decidendi

Sub-clauses (ii) and (iii) of the Duty of Assured Clause are warranties and conditions precedent, not representations. DS breached these warranties by contracting with Scotbeef on terms not declared to Lonham. Under section 10(2) of the Insurance Act 2015, Lonham is entitled to avoid liability for losses occurring after the breach. The transparency requirements in sections 16 and 17 do not apply as the policy does not attempt to contract out of the statutory protections.

Court Disposition

Appeal allowed

Orders

  • Lonham is not liable to indemnify DS for the losses claimed by Scotbeef.
  • Sections 16 and 17 of the Insurance Act 2015 do not apply to the relevant policy clauses.