Sky UK Limited & Anor v Riverstone Managing Agency Limited & Ors

Sky UK Limited & Anor v Riverstone Managing Agency Limited & Ors

Sky is entitled to indemnity for physical damage to roof cassettes occurring during the policy period, subject to a single deductible of £150,000, as the failure to specify temporary roofing was a single event. Mace is only insured for damage occurring before practical completion. Recoverable costs include the reasonable cost of temporary roofing, crash decks, decanting, and out-of-hours working, but only to the extent necessary to repair damage as at the end of the policy period. The quantum is to be determined by reference to the 2018-9 scheme, adjusted for reasonable temporary works and associated costs.

Parties
Claimant (705 Claim): Sky UK Limited; Claimant (536 Claim): Mace Limited; Defendant: Riverstone Managing Agency Limited; Defendant: The Underwriting Members of Lloyd’s Syndicate 3210 for the 2014 Year of Account Subscribing to Policy B0509DD190814; Defendant: Old Company 18 Limited; Defendant: Aspen Insurance UK Limited; Defendant: Royal & Sun Alliance Insurance PLC; Defendant: HSB Engineering Insurance Limited; Defendant: Berkshire Hathaway International Insurance Limited; Defendant: MSI Corporate Capital Limited
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Commercial Insurance Dispute (construction All Risks) / Final Judgment After Trial
Outcome
Claim allowed in part for Sky; Mace's claim limited to pre-practical completion damage; quantum to be determined.
Legal Topics
Construction All Risks Policy, Design Defect Exclusions (de5), Policy Interpretation, Aggregation of Losses, Quantum of Indemnity, Third Party Insureds, Temporary Works, Consequential Loss Exclusion
Insurance Law Construction Law Contract Law Construction All Risks Policy Design Defect Exclusions (de5) Policy Interpretation Aggregation of Losses Quantum of Indemnity +3 more

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Parties

Sky UK Limited

Claimant (705 Claim)

Mace Limited

Claimant (536 Claim)

Riverstone Managing Agency Limited

Defendant

The Underwriting Members of Lloyd’s Syndicate 3210 for the 2014 Year of Account Subscribing to Policy B0509DD190814

Defendant

Old Company 18 Limited

Defendant

Aspen Insurance UK Limited

Defendant

Royal & Sun Alliance Insurance PLC

Defendant

HSB Engineering Insurance Limited

Defendant

Berkshire Hathaway International Insurance Limited

Defendant

MSI Corporate Capital Limited

Defendant

Procedural Posture

Commercial Insurance Dispute (construction All Risks) / Final Judgment After Trial

Legal Issues

  1. 1 Whether Sky and Mace are entitled to indemnity under the construction all risks policy for damage to the Sky Central roof
  2. 2 Whether Mace is insured under the policy post-practical completion
  3. 3 Proper construction of 'physical damage' and 'event' under the policy

Ratio Decidendi

Sky is entitled to indemnity for physical damage to roof cassettes occurring during the policy period, subject to a single deductible of £150,000, as the failure to specify temporary roofing was a single event. Mace is only insured for damage occurring before practical completion. Recoverable costs include the reasonable cost of temporary roofing, crash decks, decanting, and out-of-hours working, but only to the extent necessary to repair damage as at the end of the policy period. The quantum is to be determined by reference to the 2018-9 scheme, adjusted for reasonable temporary works and associated costs.

Court Disposition

Claim allowed in part for Sky; Mace's claim limited to pre-practical completion damage; quantum to be determined.

Orders

  • Defendants to indemnify Sky for physical damage to roof cassettes occurring during the policy period, subject to a single £150,000 deductible.
  • Quantum to be calculated by reference to the 2018-9 remedial scheme, with reasonable costs for temporary roof (as per revised Sky scheme), crash decks (as per Mace scheme), decanting, and out-of-hours working included.