W.L. Sleigh Ltd v. J & H Marsh & Mclennan (UK) Ltd [2002] ScotCS 35 (8th February, 2002)

W.L. Sleigh Ltd v. J & H Marsh & Mclennan (UK) Ltd [2002] ScotCS 35 (8th February, 2002)

The exclusion in Additional Clause 3(a) does not apply to customers or clients but to principals on the supply side; therefore, the pursuers' claim is not rendered irrelevant by the exclusionary terms. The pursuers cannot recover for liability relating to the loss of Mr Singer's vehicle under Clause 3(b), but their averments regarding other heads of liability are relevant and should not be excluded from probation.

Citation
[2002] ScotCS 35
Parties
Pursuer: W L Sleigh Limited; Defender: J & H Marsh & McLennan (UK) Limited
Jurisdiction
Scotland
Procedural Posture
Civil / Procedure Roll Debate on Relevancy
Outcome
Proof before answer allowed, with partial upholding of defenders' plea-in-law regarding exclusion of claim for loss of vehicle.
Legal Topics
Insurance Policy Construction, Breach of Duty by Insurance Broker, Scope of Indemnity, Exclusion Clauses, Liability for Third Party Claims
Insurance Law Contract Law Tort Law Insurance Policy Construction Breach of Duty by Insurance Broker Scope of Indemnity Exclusion Clauses Liability for Third Party Claims

Case Brief

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Parties

W L Sleigh Limited

Pursuer

J & H Marsh & McLennan (UK) Limited

Defender

Procedural Posture

Civil / Procedure Roll Debate on Relevancy

Legal Issues

  1. 1 Whether the insurance policy excluded the pursuers' claim under Additional Clause 3(a) and (b)
  2. 2 Proper construction of the term 'principal' in the exclusion clause
  3. 3 Whether the pursuers' averments regarding liability for loss of vehicle should be excluded from probation

Ratio Decidendi

The exclusion in Additional Clause 3(a) does not apply to customers or clients but to principals on the supply side; therefore, the pursuers' claim is not rendered irrelevant by the exclusionary terms. The pursuers cannot recover for liability relating to the loss of Mr Singer's vehicle under Clause 3(b), but their averments regarding other heads of liability are relevant and should not be excluded from probation.

Court Disposition

Proof before answer allowed, with partial upholding of defenders' plea-in-law regarding exclusion of claim for loss of vehicle.

Orders

  • Proof before answer allowed on all averments except for liability relating to loss of Mr Singer's vehicle or goods carried therein, which is excluded from the claim.
  • First defenders' first plea-in-law sustained to the extent of excluding claim for loss of vehicle.