BURNETT OR GRANT AGAINST INTERNATIONAL INSURANCE COMPANY OF HANOVER LTD [2019] ScotCS CSIH_9 (22 February 2019)

BURNETT OR GRANT AGAINST INTERNATIONAL INSURANCE COMPANY OF HANOVER LTD [2019] ScotCS CSIH_9 (22 February 2019)

The exclusion for 'deliberate acts' in the policy does not apply unless the employee deliberately intended to cause the particular loss (death or serious injury). The act was intended as restraint, not to cause death. There was no finding of recklessness. The wrongful arrest extension does not apply. The insurer is bound to indemnify the insured for liability arising from the employee's act, as the death was not deliberately caused.

Citation
[2019] ScotCS CSIH_9
Parties
Pursuer and Respondent: Mrs Fiona Elsie Burnett or Grant; Fourth Defenders and Reclaimers: International Insurance Company of Hanover Ltd
Jurisdiction
Scotland
Judgment Date
22 February 2019
Procedural Posture
Reclaiming Motion (appeal) / Judgment on Appeal Against Interlocutor Granting Declarator of Indemnity
Outcome
reclaiming motion refused; interlocutor adhered to
Legal Topics
Interpretation of Insurance Exclusion Clauses, Vicarious Liability, Third Parties (rights Against Insurers) Act 2010, Public Liability Insurance, Wrongful Arrest Extension, Deliberate Acts Exclusion
Insurance Law Delict Contract Law Interpretation of Insurance Exclusion Clauses Vicarious Liability Third Parties (rights Against Insurers) Act 2010 Public Liability Insurance Wrongful Arrest Extension +1 more

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Parties

Mrs Fiona Elsie Burnett or Grant

Pursuer and Respondent

International Insurance Company of Hanover Ltd

Fourth Defenders and Reclaimers

Procedural Posture

Reclaiming Motion (appeal) / Judgment on Appeal Against Interlocutor Granting Declarator of Indemnity

Legal Issues

  1. 1 Does the 'deliberate acts' exclusion in the insurance policy preclude indemnity for the death caused by an employee's assault?
  2. 2 Is the insurer's liability limited by the wrongful arrest extension?
  3. 3 What is the proper construction of the exclusion clause in the context of door security business?

Ratio Decidendi

The exclusion for 'deliberate acts' in the policy does not apply unless the employee deliberately intended to cause the particular loss (death or serious injury). The act was intended as restraint, not to cause death. There was no finding of recklessness. The wrongful arrest extension does not apply. The insurer is bound to indemnify the insured for liability arising from the employee's act, as the death was not deliberately caused.

Court Disposition

reclaiming motion refused; interlocutor adhered to

Orders

  • Declarator granted that the fourth defenders are bound to indemnify the pursuer in respect of the death of her husband
  • No limitation of liability under wrongful arrest extension