ZURICH INSURANCE PLC UK BRANCH V INTERNATIONAL ENERGY GROUP LTD

[2015] UKSC 33, Supreme Court, Lord Neuberger, Lord Mance, Lord Clarke, Lord Sumption, Lord Reed, Lord Carnwath and Lord Hodge, 20 May 2015

Insurance (employers liability) - Mesothelioma - Insurer on risk for six out of 27 years - Amount of liability - Contribution - Recoupment - Defence costs - Third Parties (Rights Against Insurers) Acts 1930 and 2010 - Civil Liability (Contribution) Act 1978 - Compensation Act 2006

IEG was a solvent Guernsey company which supplied gas to the Channel Islands. IEG's predecessor in title employed Mr Carré for 27 years from 13 November 1961 to 31 December 1988. In that time he was exposed to asbestos and contracted mesothelioma. It was accepted for the purposes of the case that the intensity of exposure did not vary from year to year and that each exposure materially increased the risk of injury to him. In 2008 Mr Carré commenced proceedings against IEG, and they were settled shortly afterwards for the sum of £250,000 plus £15,300 costs. IEG's own defence costs were £13,151.60. Excess Insurance provided liability cover from December 1978 to December 1980, and Midland Assurance (Zurich's predecessor in title) were the insurers from December 1982 to December 1988 (20.08 per cent of the duration of exposure). There were no other traced insurers. The question in the present case was the amount of liability faced by Zurich. The Supreme Court held (Lord Mance, Lord Clarke, Lord Carnwath and Lord Hodge; Lord Neuberger, Lord Reed and Lord Sumption dissenting on points (2), (3) and (4)) as follows.