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LLR: Insurance & Reinsurance

FRANS MAAS (UK) LTD v SUN ALLIANCE AND LONDON INSURANCE PLC

[2004] Lloyd's Rep IR 649

QUEEN’S BENCH DIVISION COMMERCIAL COURT

Before Mr Justice David Steel

Insurance (liability) - Insured carried on warehousing activity - Goods released without production of bills of lading in order to assist customer repay debt to insured - Goods misappropriated - Insurance policy confined to liability under contract conditions - Whether policy covered liability to third parties - Whether insured in breach of reasonable care obligations - Whether failure to disclose to insurers that goods were being released without bills of lading - Utmost good faith - Waiver and affirmation.

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