Norman Hay PLC (in Members’ Voluntary Liquidation) v Marsh Limited

Norman Hay PLC (in Members’ Voluntary Liquidation) v Marsh Limited

It is not necessary for a claimant in a broker negligence claim to prove actual legal liability to a third party in order to recover damages; the claim may proceed on a loss of chance basis. The issues raised by Marsh as to liability, loss, and evidence are not suitable for summary determination or striking out at this stage. The applications to strike out or for summary judgment are dismissed.

Parties
Claimant: Norman Hay PLC (in Members’ Voluntary Liquidation); Defendant: Marsh Limited
Jurisdiction
England and Wales
Judgment Date
05 August 2024
Procedural Posture
Civil (commercial Court) / Application to Strike Out Claim or for Summary Judgment
Outcome
Applications to strike out and for summary judgment dismissed
Legal Topics
Insurance Broker Negligence, Loss of Chance, Measure of Damages, Indemnity Under Liability Insurance, Summary Judgment, Striking Out Pleadings
Insurance Law Professional Negligence Contract Law Insurance Broker Negligence Loss of Chance Measure of Damages Indemnity Under Liability Insurance Summary Judgment +1 more

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Parties

Norman Hay PLC (in Members’ Voluntary Liquidation)

Claimant

Marsh Limited

Defendant

Procedural Posture

Civil (commercial Court) / Application to Strike Out Claim or for Summary Judgment

Legal Issues

  1. 1 Whether the claim against Marsh Limited should be struck out or dismissed on summary judgment for lack of legal basis, loss, or evidential sufficiency
  2. 2 Whether a claimant in a broker negligence claim must prove actual legal liability to a third party to recover damages
  3. 3 Whether damages in broker negligence claims are assessed on a loss of chance basis or balance of probabilities

Ratio Decidendi

It is not necessary for a claimant in a broker negligence claim to prove actual legal liability to a third party in order to recover damages; the claim may proceed on a loss of chance basis. The issues raised by Marsh as to liability, loss, and evidence are not suitable for summary determination or striking out at this stage. The applications to strike out or for summary judgment are dismissed.

Court Disposition

Applications to strike out and for summary judgment dismissed

Orders

  • Marsh Limited's applications to strike out the claim and for summary judgment are dismissed.