Subrogation and contribution - Subrogation and contractual indemnities

(Caledonia North Sea Ltd v British Telecommunications and others [2002] UKHL 4)

The House of Lords, on 7 February 2002, delivered its much anticipated decision in the Piper Alpha case Caledonia North Sea Ltd v British Telecommunications and others : this will be reported in [2002] Lloyd’s Rep IR. The decision, on appeal from the Scottish courts, firmly establishes that the insurers’ right of subrogation is paramount, and is not deferred simply because the assured has a claim for indemnity against a third party. The House of Lords dismissed on all grounds the appeal against the decision of the Inner House of the Court of Session, reported [2000] Lloyd’s Rep IR 249 .