MARKERSTUDY INSURANCE CO LTD V ENDSLEIGH INSURANCE SERVICES LTD

[2010] EWHC 281 (Comm), Queen's Bench Division, Commercial Court, Mr Justice David Steel, 18 February 2010

Insurance - Claims-handling agreements - Proper construction of exclusion clauses relating to indirect loss - Whether extended to direct loss - Effect of deeds of termination

The claimant insurers appointed the defendants under a series of claims-handling agreements, and in the present proceedings sought damages of some £14 million for breach which included: the payment out of unnecessary sums on claims; the inaccurate reserving of claims; delays in passing on claims documentation; disruption to business in addressing the consequences of such delays; the over-reserving of claims; and interest by way of damages. The present trial was of preliminary issues as to the proper construction of two of the agreements, and whether the defendants were exempt from liability for indirect and consequential loss for data input errors and loss of business arising therefrom.