Brian Leighton (Garages) Limited v Allianz Insurance plc

Brian Leighton (Garages) Limited v Allianz Insurance plc

The exclusion in Exclusion 9 applies only where pollution or contamination is the proximate cause of the damage, not merely part of the causative chain. The wording and structure of the policy, including the write-back provisions, do not displace the presumption that 'caused by' refers to proximate cause. Therefore, the exclusion does not apply to the facts of this case, and the appeal is allowed.

Parties
Appellant/claimant: Brian Leighton (Garages) Limited; Respondent/defendant: Allianz Insurance PLC
Jurisdiction
England and Wales
Judgment Date
11 January 2023
Procedural Posture
Civil Appeal / Judgment on Appeal From Summary Judgment in High Court
Outcome
appeal allowed
Legal Topics
Policy Interpretation, Exclusion Clauses, Proximate Cause, Business Interruption, Material Damage
Insurance Law Contract Law Policy Interpretation Exclusion Clauses Proximate Cause Business Interruption Material Damage

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Parties

Brian Leighton (Garages) Limited

Appellant/claimant

Allianz Insurance PLC

Respondent/defendant

Procedural Posture

Civil Appeal / Judgment on Appeal From Summary Judgment in High Court

Legal Issues

  1. 1 Whether Exclusion 9 in the insurance policy excludes cover for damage caused by pollution or contamination unless it is proximately caused by a Specified Event
  2. 2 Whether the exclusion applies only to proximate causes or to any part of the causative chain
  3. 3 Proper construction of 'caused by' in Exclusion 9

Ratio Decidendi

The exclusion in Exclusion 9 applies only where pollution or contamination is the proximate cause of the damage, not merely part of the causative chain. The wording and structure of the policy, including the write-back provisions, do not displace the presumption that 'caused by' refers to proximate cause. Therefore, the exclusion does not apply to the facts of this case, and the appeal is allowed.

Court Disposition

appeal allowed

Orders

  • Appeal allowed; summary judgment set aside; claim not excluded by Exclusion 9; case to proceed.