A judgment of the English Court of Appeal which we called ‘bizarre’ and ‘peculiar’ has been predictably overturned by the UK Supreme Court. The Supreme Court found that the hospital run by the NHS Trust is liable to a patient with a head injury who had been given misinformation by the hospital receptionist that he
Sandra Sithole (ZA)
Strip club not covered for credit card theft by employees (US)
By Sandra Sithole (ZA) on
In August 2018, a US federal court ruled that an insurer did not have to cover a strip club for third party reimbursement costs arising from credit card fraud on its customers by the club’s employees because no direct loss was suffered by the club itself.
The insured, a club owner, was the holder of…
Damage arising from marijuana operations not covered by policy (US)
By Sandra Sithole (ZA) on
A US appeals court in August 2018 found that an insurer does not have to indemnify its insured for damage to a warehouse by tenants who converted it into a marijuana growing operation, finding that an exclusion in the policy for losses resulting from criminal acts precluded cover.
The claim arose under the building and…
Wrongful death claims at bar fails on assault exclusion (US)
By Sandra Sithole (ZA) on
Two US district courts in two separate cases held in July 2018 that the insurers of public bars do not have a duty to defend or indemnify the insured owners of the bars for violent deaths of patrons because of the policy exclusion for bodily injury arising from an assault, battery or physical altercation.
The…
The massive cost of medical negligence cases is an international problem
By Sandra Sithole (ZA) on
It is not only in South Africa that the cost of medical negligence lawsuits is draining the health service. There are calls in Britain for reform to help protect the National Health Service from pay-outs which hit GBP1.4 billion in the fiscal year ending March 2016 alone.
The UK Centre for Policy Studies says that…
Periodic compensation of future medical expenses
In a landmark judgment, the Constitutional Court has left the door open for the development of the common law to have future damages in personal injury claims paid periodically and by way of services.
The Constitutional Court was faced with the question whether massive future medical expenses based on speculation can be paid by…
Court restates principles relating to the duty of utmost good faith in insurance contracts (UK)
By Sandra Sithole (ZA) on
A UK court has found that an insurer is entitled to avoid a policy where the insured had misrepresented the state of repair of the insured property and failed to disclose malicious acts and vandalism which had the effect of increasing the risk of fire in the property.
The insured, a mixed commercial and residential…
Struck off doctor practising without insurance refused appeal (UK)
By Sandra Sithole (ZA) on
In August 2017, the English Court of Appeal denied an appeal to a gynaecologist who was struck off the roll for practising without professional indemnity cover, which is compulsory in the UK.
The doctor, who had a substantial private practice, was uninsured for a period of 5 years between 2007 and 2012. Until 2002, he…
Appeal Court confirms insurer liable to indemnify insured for failure to assess the risk of a schizophrenic prison inmate (Australia)
By Sandra Sithole (ZA) on
The New South Wales Court of Appeal upheld the decision of a lower court, holding an insurer liable to indemnify its insured, a prison detention centre for failing to assess the risk of a chronic schizophrenic prison inmate. The inmate threw himself from a building and suffered serious brain and other physical injuries.
The issue…
Cover under US liability policy does not extend to arson by hospital patients
By Sandra Sithole (ZA) on
In August 2017, a US federal court held that the indemnity for ‘activities’ on behalf of the insured under a liability policy of an insured and its members does not extend to cover arson or attempted suicide by two mentally ill patients who attempted to commit suicide by burning down their apartments owned and managed…