Emo Oil Limited -v- Sun Alliance & London Insurance Company [2009] IESC 2 (22 January 2009)

Emo Oil Limited -v- Sun Alliance & London Insurance Company [2009] IESC 2 (22 January 2009)

The policy unambiguously defines insolvency as arising when a winding up order is made, not when a petition is presented. The relation back doctrine does not alter the contractual definition. There is no ambiguity to justify contra proferentem. Therefore, insolvency did not occur within the policy period.

Citation
[2009] IESC 2
Parties
Plaintiff/respondent: Emo Oil Limited; Defendant/appellant: Sun Alliance and London Insurance PLC
Jurisdiction
Ireland
Judgment Date
22 January 2009
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court Decision on Preliminary Issue
Outcome
Appeal allowed; High Court order set aside
Legal Topics
Interpretation of Insurance Contracts, Definition of Insolvency, Timing of Liquidation Under Policy, Relation Back Doctrine
Insurance Law Contract Law Company Law Interpretation of Insurance Contracts Definition of Insolvency Timing of Liquidation Under Policy Relation Back Doctrine

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Parties

Emo Oil Limited

Plaintiff/respondent

Sun Alliance and London Insurance PLC

Defendant/appellant

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court Decision on Preliminary Issue

Legal Issues

  1. 1 Whether the insolvency of the insured buyer occurred within the period of insurance under the terms of the policy, having regard to section 220(2) of the Companies Act, 1963
  2. 2 Whether the policy definition of insolvency includes the deemed commencement of liquidation under Irish law

Ratio Decidendi

The policy unambiguously defines insolvency as arising when a winding up order is made, not when a petition is presented. The relation back doctrine does not alter the contractual definition. There is no ambiguity to justify contra proferentem. Therefore, insolvency did not occur within the policy period.

Court Disposition

Appeal allowed; High Court order set aside

Orders

  • The appeal is allowed.
  • The order of the High Court is set aside.