Tesco Stores Ltd v Constable & Ors

Tesco Stores Ltd v Constable & Ors

Tesco’s liability to Chiltern under the deed of covenant was for pure economic loss and not in respect of physical damage to Chiltern’s property or property rights. The public liability policy, including its contractual liability extension, did not cover such liability. The appeal was dismissed.

Parties
Appellant: Tesco Stores Limited; Respondents: Constable & Ors
Jurisdiction
England and Wales
Judgment Date
16 April 2008
Procedural Posture
Civil Appeal / Judgment on Appeal From Queen’s Bench Division
Outcome
Appeal dismissed
Legal Topics
Public Liability Insurance, Contractual Indemnity, Pure Economic Loss, Construction of Insurance Policies
Insurance Law Contract Law Tort Law Public Liability Insurance Contractual Indemnity Pure Economic Loss Construction of Insurance Policies

Case Brief

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Parties

Tesco Stores Limited

Appellant

Constable & Ors

Respondents

Procedural Posture

Civil Appeal / Judgment on Appeal From Queen’s Bench Division

Legal Issues

  1. 1 Whether Tesco can recover from excess public liability insurers for sums paid under a deed of covenant for economic loss to a third party
  2. 2 Whether the losses claimed are damages in respect of loss or damage to material property, obstruction, loss of amenities, nuisance or any like cause within the meaning of the insuring clause
  3. 3 Whether the contractual liability extension covers Tesco’s liability under the deed of covenant

Ratio Decidendi

Tesco’s liability to Chiltern under the deed of covenant was for pure economic loss and not in respect of physical damage to Chiltern’s property or property rights. The public liability policy, including its contractual liability extension, did not cover such liability. The appeal was dismissed.

Court Disposition

Appeal dismissed