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United Kingdom Leading Case guarantees and indemnitiesgood faith and relational contractsmisrepresentation

The Mercandian Continent

[2001] EWCA Civ 1275
JurisdictionUnited Kingdom
CourtEngland and Wales Court of Appeal (Civil Division)
Year2001
StatusBinding authority

Summary

An insured who uses fraudulent devices to support an otherwise valid claim forfeits the entire claim under the post-contractual duty of good faith in insurance law.

Key Principle

post-contractual duty of good faith; fraudulent devices rule in insurance claims

Area of Law

insurance

Related Cases

Allianz Australia Insurance Ltd v Sim [2012] HCA 39
Certain Lloyd's Underwriters v Cross (2012) 248 CLR 378

Under Insurance Contracts Act s.54, an insurer cannot refuse a claim on the basis of the insured's breach of duty of disclosure where that breach did not cause or contribute to the loss.

Westport Insurance Corporation v Gordian Runoff Ltd (2011) 244 CLR 239

Insurance contract construction follows general commercial contract principles, requiring consideration of text in context and giving effect to the commercial purpose.

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