ST PAUL FIRE & MARINE INSURANCE CO (UK) LTD V McCONNELL DOWELL CONSTRUCTORS LTD AND OTHERS

(1995) 4 Re LR 293

Court of Appeal

Before District Judge Conlon

Non-disclosure - Misrepresentation - Materiality - Contractors All Risks - Design and construction project - Proposal stating that construction involved piled foundations - Failure to disclose earlier reports - Construction proceeding on shallow footings - Subsidence damage caused to buildings - Whether insurer’s right of avoidance arose only when misrepresentation or non-disclosure was “material” and when actual insurer was induced thereby to enter into contract - Test of materiality - Whether limited to factors seen as increasing risk - Whether inducement could be inferred where actual insurer did not give evidence.