YOUNG , WAYNE STEPHEN GARDNER YOUNG AGAINST ROYAL AND SUN ALLIANCE PLC [2019] ScotCS CSOH_32 (03 April 2019)

YOUNG , WAYNE STEPHEN GARDNER YOUNG AGAINST ROYAL AND SUN ALLIANCE PLC [2019] ScotCS CSOH_32 (03 April 2019)

The court held that the pursuer was in breach of the duty of fair presentation under s.3(1) of the Insurance Act 2015 by failing to disclose his prior directorships in companies that had entered insolvent liquidation. The insurer's email did not constitute a waiver of the right to such disclosure, as it was not an inquiry but a statement of the basis for cover, and the breach predated the email. There was no reliance or knowledge of the right to be waived. Accordingly, the defender's plea that the pursuer's averments of waiver were irrelevant succeeded.

Citation
[2019] ScotCS CSOH_32
Parties
Pursuer: Wayne Stephen Gardner Young; Defender: Royal and Sun Alliance PLC
Jurisdiction
Scotland
Judgment Date
03 April 2019
Procedural Posture
Insurance Claim (commercial Property Fire) / Debate on Relevancy (waiver of Disclosure Under Insurance Act 2015)
Outcome
Pursuer's motion refused; defender's motion granted; averments of waiver deleted as irrelevant; case to proceed to proof on remaining issues.
Legal Topics
Duty of Fair Presentation, Non Disclosure, Waiver of Disclosure, Material Circumstances, Insurance Act 2015 S.3, Proposal Forms and Market Presentations
Insurance Law Contract Law Duty of Fair Presentation Non Disclosure Waiver of Disclosure Material Circumstances Insurance Act 2015 S.3 Proposal Forms and Market Presentations

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Parties

Wayne Stephen Gardner Young

Pursuer

Royal and Sun Alliance PLC

Defender

Procedural Posture

Insurance Claim (commercial Property Fire) / Debate on Relevancy (waiver of Disclosure Under Insurance Act 2015)

Legal Issues

  1. 1 Whether the pursuer breached the duty of fair presentation under s.3(1) of the Insurance Act 2015 by failing to disclose prior directorships in insolvent companies
  2. 2 Whether the insurer (defender) waived its entitlement to disclosure of such information by limiting its inquiry to the insolvency of the insured only

Ratio Decidendi

The court held that the pursuer was in breach of the duty of fair presentation under s.3(1) of the Insurance Act 2015 by failing to disclose his prior directorships in companies that had entered insolvent liquidation. The insurer's email did not constitute a waiver of the right to such disclosure, as it was not an inquiry but a statement of the basis for cover, and the breach predated the email. There was no reliance or knowledge of the right to be waived. Accordingly, the defender's plea that the pursuer's averments of waiver were irrelevant succeeded.

Court Disposition

Pursuer's motion refused; defender's motion granted; averments of waiver deleted as irrelevant; case to proceed to proof on remaining issues.

Orders

  • Pursuer's averments of waiver deleted as irrelevant.
  • Case to proceed to proof on issues of insurable interest and quantum.