Relying on policy defences

In Anders & Kern Ltd v CGU Insurance plc [2007] EWCA Civ 1481 the Court of Appeal has upheld the first instance judgment of His Honour Justice Mackie QC, [2007] Lloyd’s Rep IR 555, discussed in the August 2007 issue of Insurance Law Monthly. The case largely concerned the proper interpretation of policy exclusions, but from a wider point of view there was some discussion in the lower court as to how the duty of utmost good faith might restrict the insurers’ right to rely upon policy defences. The appeal to the Court of Appeal focused on the policy terms themselves.

Anders & Kern: the insurance

The assured, AK, was formed in 1989 and was a wholesaler of audio-visual presentation equipment and home cinema systems, operating from premises that included a warehouse in Mildenhall Suffolk. AK’s managing director was a Mr Kuziw.