Cheltenham & Gloucester Plc v Royal & Sun Alliance Insurance Co Plc [2000] ScotCS 254 (5 October 2000)

Cheltenham & Gloucester Plc v Royal & Sun Alliance Insurance Co Plc [2000] ScotCS 254 (5 October 2000)

A decree in foro against the insured, even without findings in fact, is sufficient to establish liability for the purposes of a claim under the Third Parties (Rights Against Insurers) Act 1930, provided the decree stands unreduced and is referable to the pleadings. The pleadings in this case are relevant to allow proof, particularly on the issue of good faith under the policy.

Citation
[2000] ScotCS 254
Parties
Pursuer: Cheltenham & Gloucester plc; Defender: Royal & Sun Alliance Insurance Co plc
Jurisdiction
Scotland
Judgment Date
05 October 2000
Procedural Posture
Civil Action for Payment Under Insurance Policy (third Parties (rights Against Insurers) Act 1930) / Procedure Roll Debate on Relevancy (plea in Law for Dismissal)
Outcome
Defenders' first plea-in-law (for dismissal) repelled; proof allowed of parties' averments.
Legal Topics
Third Parties (rights Against Insurers) Act 1930, Indemnity Under Insurance Policy, Relevancy of Pleadings, Res Judicata, Good Faith in Insurance Contracts
Insurance Law Civil Procedure Third Parties (rights Against Insurers) Act 1930 Indemnity Under Insurance Policy Relevancy of Pleadings Res Judicata Good Faith in Insurance Contracts

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Parties

Cheltenham & Gloucester plc

Pursuer

Royal & Sun Alliance Insurance Co plc

Defender

Procedural Posture

Civil Action for Payment Under Insurance Policy (third Parties (rights Against Insurers) Act 1930) / Procedure Roll Debate on Relevancy (plea in Law for Dismissal)

Legal Issues

  1. 1 Whether a decree obtained against an insured without findings in fact is sufficient to establish liability for the purposes of a claim under the Third Parties (Rights Against Insurers) Act 1930
  2. 2 Whether the pleadings are relevant to allow proof against the insurer under the policy, particularly regarding the good faith requirement

Ratio Decidendi

A decree in foro against the insured, even without findings in fact, is sufficient to establish liability for the purposes of a claim under the Third Parties (Rights Against Insurers) Act 1930, provided the decree stands unreduced and is referable to the pleadings. The pleadings in this case are relevant to allow proof, particularly on the issue of good faith under the policy.

Court Disposition

Defenders' first plea-in-law (for dismissal) repelled; proof allowed of parties' averments.

Orders

  • Proof allowed on whether the insured acted in good faith under the policy.