Autumn 2008

Summaries of important recent developments for those involved in disputes

"Assumption of responsibility" test for remoteness of damage?

The House of Lords has recently suggested "an assumption of responsibility" angle to the classic test for remoteness of damage first set out in the nineteenth century in Hadley v Baxendale. The old test requires the claimant to prove special knowledge of any loss that does not naturally arise out of the defendant's breach. 

Reinsurance and International Risk team (RIRt) Notes Autumn 2008

• A perfect storm?
• The credit crunch - clauses to consider this renewals season;
• Natural catastrophes - the causation conundrum;
• Continued convergence of the reinsurance capital markets?
• Care and caution at renewal;
• Known knowns, known unknowns and unknown unknowns;
• The European Mediation Directive.

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Broker's statement as to reinsured's underwriting principles upheld as a representation of fact 

Limit No.2 Ltd v AXA Versicherung AG

Court of Appeal (Ward, Longmore and Jackson LJs) - 12 November 2008

In this important decision, the Court of Appeal has provided valuable guidance on a number of issues of general interest to the insurance and reinsurance markets. 

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Notification of circumstances - timely clarification of the law

The long awaited Court of Appeal decision in H L B Kidsons-v-Lloyd's Underwriters and Others (judgment dated 31 October 2008), on notification of circumstances has, except in one important respect, upheld the decision of the court of first instance in favour of insurers. However, it tones down the exacting position taken by the lower court and provides welcome clarification of the law for the industry as a whole.

the angle - Autumn 2008

"Are class actions coming our way?";

Application for stay of English proceedings dismissed;

Application for disclosure of third party's insurance cover refused;

Deleted words in slip admissable to establish what the parties had "agreed not to agree";

Insurance Agreement Fees - Insurance Premium Tax;

Update on Payment Protection Insurance;

Solvency II;

Adbestos update. 

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 InSure November 2008

This month's roundup of developments affecting the insurance industry sees ECOFIN approving the Solvency II framework directive, a further investigation by the CC into the PPI market, plans to deregulate Lloyd's of London......

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