Court Assesses Tortious Liability Following Contractual Liability Ruling

The court examines the question of tortious liability for the purpose of a policy of liability insurance in Omega Proteins Ltd v Aspen Insurance UK Ltd (2010).

Where, under a policy of liability insurance, a clause excluded any liability arising under a contract – except for the situation where such liability would have arisen in the absence of such a contract (i.e. in tort) – and where a previous judgment ruled that the insured was liable for breach of contract, then the court was not precluded from examining the question of tortious liability which fell within the cover.

In May 2006, a change in EC Regulation came into force which reclassified the categories of animal by-products, making some only fit for disposal. Northern Counties Meat Ltd ("NC") did not react quickly enough to the changes and supplied numerous batches of by-product to Omega Proteins Limited ("Omega") which were only fit for disposal.