BUCKS PRINTING PRESS LTD V THE PRUDENTIAL ASSURANCE CO AND ANOTHER

(1994) 3 Re LR 219

Queen’s Bench Division (Commercial Court)

Before Mr Justice Saville

Marine insurance - Damage to cargo - Claim against sellers of cargo - Whether cargo owners had established that bad packing caused transit damage to machinery where goods arrived in damaged state caused by machines impacting against each other in container - Whether insurance had become invalidated because seller’s employee had recklessly sought to persuade underwriters that machinery had been properly packed - Whether making of fraudulent or reckless material misrepresentations by insured to an insurer in support of a claim under the insurance amounts to a failure to observe the duty of the utmost good faith - Whether making of negligent as opposed to fraudulent or reckless misrepresentations in support of a claim entitled insurers to repudiate liability on the basis of a failure to exercise utmost good faith.