K/S MERC-SCANDIA XXXXII v CERTAIN LLOYD’S UNDERWRITERS OCEAN MARINE INSURANCE CO LTD AND OTHERS

[2001] Lloyd's Rep IR 802

COURT OF APPEAL

Before Lord Justice Robert Walker, Lord Justice Longmore and Mr Justice Carnwath

Insurance (marine liability) - Marine Insurance Act 1906, s17 - Claim against Assured by third party - Underwriters taking over Assured’s defence - Assured denying validity of exclusive jurisdiction clause and producing forged letter denying authority of agent - Post-contract fraud - Utmost good faith - Whether forged letter breach of post-contract duty of utmost good faith - Whether material - Whether Underwriters induced by false statement - Effect of immaterial fraud - Notice of Claims clause - Effect of breach by Assured - Innominate term - Whether Underwriters suffering serious consequences due to breach - Assured becoming insolvent - Third Parties (Rights against Insurers) Act 1930.