Professional indemnity insurance: exclusion for warranty claims

In Oakapple Homes (Glossop) Ltd v DTR (2009) Ltd [2013] EWHC 2394 (TCC), Ramsey J held that: (1) the architect was not entitled to rely on alleged negligence by a contractor to reduce the damages payable to an employer following the novation of the original agreement to the contractor; and (2) insurers remained liable to meet claims arising under the warranty despite the existence of an exclusion because the benefit of the warranty was found to be no greater than the benefit of the equivalent warranty in the original contract. The decision is discussed by Anneliese Day QC of 4 New Square.

Oakapple : the facts