Snaddon v. The London, Edinburgh, and Glasgow Assurance Co., Ltd [1902] ScotLR 40_164 (03 December 1902)

Snaddon v. The London, Edinburgh, and Glasgow Assurance Co., Ltd [1902] ScotLR 40_164 (03 December 1902)

The insurance company failed to give the cautioner (Snaddon) timeous notice of the principal's (Jack's) criminal conduct, thereby prejudicing the cautioner's position and forfeiting any right to claim under the guarantee or set off against the policy payout.

Citation
[1902] ScotLR 40_164
Parties
Pursuer/respondent: David Snaddon; Defender/reclaimer: The London, Edinburgh, and Glasgow Assurance Company, Limited
Jurisdiction
Scotland
Judgment Date
03 December 1902
Procedural Posture
Civil (insurance/guarantee) / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, Second Division
Outcome
Appeal dismissed; judgment for pursuer/respondent affirmed.
Legal Topics
Cautioner Liability, Guarantee Formalities, Notice to Cautioner, Rei Interventus, Set Off, Probative Writs
Contract Law Insurance Law Suretyship/guarantee Law Cautioner Liability Guarantee Formalities Notice to Cautioner Rei Interventus Set Off +1 more

Case Brief

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Parties

David Snaddon

Pursuer/respondent

The London, Edinburgh, and Glasgow Assurance Company, Limited

Defender/reclaimer

Procedural Posture

Civil (insurance/guarantee) / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, Second Division

Legal Issues

  1. 1 Whether the insurance company was entitled to set off a claim under a guarantee against a policy payout when it failed to give timeous notice to the cautioner of the principal's criminal conduct.
  2. 2 Whether the bond of guarantee required to be probative or was valid if merely subscribed under the Mercantile Law Amendment Act 1856, section 6.
  3. 3 Whether rei interventus was established to make an improbative guarantee effectual.

Ratio Decidendi

The insurance company failed to give the cautioner (Snaddon) timeous notice of the principal's (Jack's) criminal conduct, thereby prejudicing the cautioner's position and forfeiting any right to claim under the guarantee or set off against the policy payout.

Court Disposition

Appeal dismissed; judgment for pursuer/respondent affirmed.

Orders

  • Decree for pursuer in terms of the summons with expenses; defenders' counter-claim for set-off refused.