Insurance & Reinsurance

Towergate Financial & Others: George Spalton (led by Gavin Kealey QC of 7KBW) successful in Court of Appeal decision on construction of indemnity provisions in an SPA. See decision here.

Legal 500 describes 4 New Square as ‘A forward-looking and internationally minded chambers’ that is ‘modern and unstuffy’, 4 New Square has ‘real strength in depth’ and ‘an excellent balance between heavyweight QCs and rising stars’. Using chambers’ ‘extremely impressive stable’ of counsel ‘adds gravitas to your litigation tactical toolkit’. In addition, to its core areas of professional negligence, commercial, construction, costs, product liability and sports law, the set is ‘fast becoming a household name’ in international arbitration. The facilities are ‘excellent, and mediation suites very useful’, observes one solicitor. Instructing law firms consider it ‘a well-oiled machine’, where clerks and barristers ‘appear to work symbiotically’. Senior clerk and chief executive Lizzy Stewart ‘understand relationships and have a very modern approach to clerking’, which is appreciated by solicitors. Deputy senior clerks Dennis Peck (‘great client service’) and Alex Dolby (‘understands the quality we are looking for and is always very responsive to our needs’) are ‘first class’. The managing trio of clerks do ‘a fantastic job’ marshalling the clerks’ room, which is described as ‘flexible, collaborative and responsive’; ‘you feel you are working as part of a team with them’. The ‘excellent’ senior team clerk Andrew Call is ‘very responsive and helpful’; the ‘impressive’ Tom Woolsey and James Barrass provide ‘good, practical assistance in a timely manner’.

Avondale Exhibitions v Arthur J Gallagher concerned a claim by a company against its insurance broker arising from an insurer’s decision to decline cover.
In giving judgment for the defendant insurance broker, HHJ Keyser Q.C. (i) endorsed the statements of David Steel J in Jones v Environcom Limited [2010] EWHC 759 (Comm) and Flaux Jin Synergy Health (UK) Limited v CGU Insurance Plc [2010] EWHC 2583 (Comm) as to the scope of an insurance broker’s duties, and (ii) held that the lack of expert evidence significantly limited, albeit did not altogether exclude, the possibility of a finding that the insurance broker had acted in breach of its duty to exercise reasonable skill and care.
Clare Dixon of 4 New Square, instructed by Simmons & Simmons, successfully represented Arthur J Gallagher Insurance Brokers Limited. The decision is considered by Katie Powell of 4 New Square.

Notwithstanding assurances from the Information Commissioner that they “prefer the carrot to the stick” the fact remains that the ICO will have the power under Article 83(4) the General Data Protection Regulation (“GDPR”) to levy fines of up to €10million or 2% of annual global turnover on data controllers. Alison Padfield QC, Clare Dixon and Peter Morcos consider which aspects of GDPR compliance are likely to be insurable and/or insured, focussing in particular upon: (a) the insurability (or otherwise) of fines; (b) new potential liabilities under the GDPR; and (c) the potential pitfalls of assuming that cyber insurance will cover all civil liabilities under GDPR.