The trustees of a trust which had invested money through a trust administration company whose directors had misappropriated the funds failed in its action against the investment manager of the funds which innocently paid out the funds to the trust administration company. The court held that the investment manager had not acted wrongfully nor negligently
The High Court has permitted a motor insurer to put up security for the disputed balance of motor vehicle storage costs in order to enable the insurer to get release of the vehicle and to stop storage charges being incurred.
The insurer paid out the insured for the full value of the seriously damaged vehicle
In this Supreme Court of Appeal judgment the court confirmed that insured persons are under a duty to act in good faith in their dealings with insurers. Accordingly, the wilful lodgement of a false claim by the insured constitutes the breach of a duty of good faith which entitles the insurer to terminate the policy.
This recent rather cryptic judgment confirms that in appropriate circumstances, an insurer may both reject the relevant insurance claim and cancel the policy by reason of the breach of the insured’s claim co-operation obligations under the policy.
The judgment is thin on particularity and does not identify the particular claims co-operation clause, its wording nor