HALLIWELLS LLP V NES SOLICITORS AND QUINN DIRECT INSURANCE

[2011] EWHC 947 (QB), Queen's Bench Division, Judge McCahill QC, 23 February 2011

Insurance (liability) - Professional indemnity - Claim for indemnification by solicitors under a guarantee - Whether guarantee given dishonestly - Whether indemnity given in course of business as solicitors

The claimant solicitors commenced proceedings against the defendant solicitors to enforce an undertaking given by the defendants to pay the sum of £1.5 million on behalf of a client. Judgment was obtained and the claimants sought to enforce the judgment against the defendants' liability insurers under the Third Parties (Rights Against Insurers) Act 1930. The court ruled that the insurers were not liable under the policy.