Dalamd Ltd v Butterworth Spengler Commercial Ltd [2018] EWHC 2558 (Comm)

Dalamd Ltd v Butterworth Spengler Commercial Ltd [2018] EWHC 2558 (Comm). The judgment of Butcher J was handed down today in this broker’s negligence case. There are two points of interest. First, does the insured have to show that as a result of the broker’s negligence the claim on the policy would have failed, or is it enough to show that there was significant risk that it would have done so? Second, how does the court approach the question of what would have happened in relation to other challenges to the cover for which the broker was not responsible. Butcher J held that the insured has to show that the claim on the policy would have failed, and that, but for the negligence, it would have succeeded. The latter question is to be determined on the balance of probabilities rather than a loss of a chance. Neil Hext QC and Peter Morcos appeared for the Claimant.

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