Case Alert - [2017] EWCA Civ 4097
Court of Appeal finds that insurer had a "duty to
speak" on particular facts of case
After deciding, as a preliminary issue, that the insurance
policy in question did cover employee theft, Eder J found that the
insured had breached a claims cooperation clause (a condition
precedent) by failing to provide certain profit and loss and
management accounts ("the accounts"). The parties had
agreed to "park" quantum issues pending determination of
liability, but the judge had found that it would not have cost the
insured anything extra to provide the accounts, which they already
had, and so the condition precedent had been breached. In reaching
this conclusion, the judge rejected an argument that there had been
an estoppel or breach by the insurers of their duty of good faith.
The insured appealed against that decision.
