ARTICLE · 01 MARCH 2011

Fraudulent Claims And Avoidance

Taylor Wessing

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This case represents the latest in a serious of recent High Court decisions involving dishonesty in the presentation of claims.

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Anthony Menzies

James Crabtree

Jonathan Rogers

Susannah Wakefield

Moral Hazard and the use of a "fraudulent device"

Sharon's Bakery (Europe) Ltd v. Axa Insurance & Anor [2011]¹
Commercial Court, 9 February 2011

This case represents the latest in a serious of recent High Court decisions involving dishonesty in the presentation of claims².

The insured ("Sharon") operated a wholesale bakery in North London, owned by its two directors, Mr Bension Nassim and Mr Ali Caplin. Prior to the formation of Sharon, Mr Nassim had run his own business, Sharon's Bakery (Wholesale and Retail) Ltd ("SBWR") but in 2007 he had had agreed to go in to business with Mr Caplin, with the formation of Sharon. Mr Caplin provided the premises for the new bakery, and Mr Nassim the equipment, which he brought from his former company, SBWR.

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