Church Commissioners For England & Ors v Scor UK Company Ltd & Ors [1998] ScotCS 5 (20 May 1998)

Church Commissioners For England & Ors v Scor UK Company Ltd & Ors [1998] ScotCS 5 (20 May 1998)

On a sound construction of the policy, the 'deductible amount' operates as an excess, meaning the first £1,000,000 (as adjusted) of each and every claim is to be borne by the insured, and the insurers are only liable for the amount exceeding that sum. The policy does not provide for indemnity of the whole loss once the deductible is exceeded. The counterclaim for rectification is refused by consent.

Citation
[1998] ScotCS 5
Parties
Pursuers: Church Commissioners for England and Others; Defenders: SCOR UK Company Limited and Others
Jurisdiction
Scotland
Judgment Date
20 May 1998
Procedural Posture
Commercial Insurance Contract Dispute / Preliminary Proof on Construction of Policy and Rectification Counterclaim
Outcome
Declarator granted in favour of defenders' construction; counterclaim for rectification refused by consent.
Legal Topics
Policy Interpretation, Deductible/excess Clauses, Rectification, Commercial Insurance, Contra Proferentem
Insurance Law Contract Law Policy Interpretation Deductible/excess Clauses Rectification Commercial Insurance Contra Proferentem

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Parties

Church Commissioners for England and Others

Pursuers

SCOR UK Company Limited and Others

Defenders

Procedural Posture

Commercial Insurance Contract Dispute / Preliminary Proof on Construction of Policy and Rectification Counterclaim

Legal Issues

  1. 1 Proper construction of 'deductible amount' in insurance policy
  2. 2 Whether indemnity is for whole loss or only for amount exceeding deductible
  3. 3 Admissibility and relevance of extrinsic evidence in contract interpretation

Ratio Decidendi

On a sound construction of the policy, the 'deductible amount' operates as an excess, meaning the first £1,000,000 (as adjusted) of each and every claim is to be borne by the insured, and the insurers are only liable for the amount exceeding that sum. The policy does not provide for indemnity of the whole loss once the deductible is exceeded. The counterclaim for rectification is refused by consent.

Court Disposition

Declarator granted in favour of defenders' construction; counterclaim for rectification refused by consent.

Orders

  • On a sound construction of the policy, the first £1,000,000 (as adjusted) of each and every claim constitutes an excess and is to be borne by the pursuers.
  • Counterclaim for rectification refused by consent.