Crighton & Anor v. Catlin (Five) Ltd & Ors [2008] ScotHC HCJAC_172 (12 December 2008)

Crighton & Anor v. Catlin (Five) Ltd & Ors [2008] ScotHC HCJAC_172 (12 December 2008)

The defenders are bound by the written contract of insurance, which included flood cover, as issued by their admitted agent Giles. There are no relevant averments by the defenders to justify departing from the written terms or to support a defence of reduction. The defenders' assertion that Giles exceeded his authority does not entitle them to ignore the contract's terms in the absence of proof that the pursuers were aware of any limitation. The pursuers are entitled to declarator and indemnification as sought.

Citation
[2008] ScotHC HCJAC_172
Parties
Pursuer: Derek Crighton; Pursuer: Eleanor Crighton; Defender: Catlin (Five) Limited; Defender: Brit Underwriting Limited; Defender: Great Lakes Reinsurance (UK) PLC; Defender: GE Insurance Solutions; Defender: Bestpark International Ltd (formerly Trenwick International Ltd)
Jurisdiction
Scotland
Judgment Date
12 December 2008
Procedural Posture
Civil (insurance Contract Dispute) / Procedure Roll (motion to Dismiss on Relevancy)
Outcome
Defenders' motion to dismiss refused; pursuers' pleas-in-law one to three sustained; decree granted in terms of the first conclusion; proof allowed on quantum; expenses reserved.
Legal Topics
Ostensible Authority, Actual Authority, Insurance Indemnity, Contract Formation, Agency Representation, Policy Interpretation
Insurance Law Contract Law Agency Law Ostensible Authority Actual Authority Insurance Indemnity Contract Formation Agency Representation +1 more

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Parties

Derek Crighton

Pursuer

Eleanor Crighton

Pursuer

Catlin (Five) Limited

Defender

Brit Underwriting Limited

Defender

Great Lakes Reinsurance (UK) PLC

Defender

GE Insurance Solutions

Defender

Bestpark International Ltd (formerly Trenwick International Ltd)

Defender

Procedural Posture

Civil (insurance Contract Dispute) / Procedure Roll (motion to Dismiss on Relevancy)

Legal Issues

  1. 1 Whether the defenders are contractually obliged to indemnify the pursuers for flood damage under the insurance policy.
  2. 2 Whether the agent (Giles Insurance Brokers) had actual or ostensible authority to bind the defenders to provide flood cover.
  3. 3 Whether the written contract terms including flood cover are binding on the defenders despite alleged limitations on the agent's authority.

Ratio Decidendi

The defenders are bound by the written contract of insurance, which included flood cover, as issued by their admitted agent Giles. There are no relevant averments by the defenders to justify departing from the written terms or to support a defence of reduction. The defenders' assertion that Giles exceeded his authority does not entitle them to ignore the contract's terms in the absence of proof that the pursuers were aware of any limitation. The pursuers are entitled to declarator and indemnification as sought.

Court Disposition

Defenders' motion to dismiss refused; pursuers' pleas-in-law one to three sustained; decree granted in terms of the first conclusion; proof allowed on quantum; expenses reserved.

Orders

  • Repel plea-in-law one for the defenders.
  • Sustain pleas-in-law one to three for the pursuers.