The divisibility of rights

In the April 2007 issue of Insurance Law Monthly there was brief discussion of the decision of the Court of Appeal in Brit Syndicates Ltd and others v Italaudit SpA [2007] Lloyd’s Rep IR 343. The Court of Appeal held that, on the wording of the composite policy under consideration, the general rule that the rights of composite assureds are entirely independent of each other had been ousted and that the avoidance of the policy against one co-assured precluded recovery by the other. The Court of Appeal’s interpretation has now been reversed by the House of Lords on Appeal, Brit Syndicates Ltd and others v Italaudit SpA [2008] UKHL 18. The only reasoned speech was given by Lord Mance, and the other members of the House of Lords simply concurred.