Discontinued Business Group Update - July 2011

Whether claim by insured under liability policy was time-barred and when did the "claim" arise?

William McIllroy (Swindon) Limited and others v Quinn Insurance Limited [2011] EWCA Civ 825

A third party alleged that the insured had negligently caused a fire which damaged its property. The insured denied liability but notified its public liability insurer. After the third party had written a letter of claim to the insured, the insurer denied liability (on the ground that the insured had breached a policy condition). In due course, a default judgment was entered against the insured and damages were later assessed by the court. After the insured went into voluntary liquidation, the third party claimed under the Third Parties (Rights against Insurers) Act 1930.