Professional indemnity insurance: aggregation

In AIG Europe Ltd v OC320301 LLP [2015] EWHC 2398 (Comm) Teare J was asked to determine whether a number of different claims against a firm of lawyers could be characterised as arising from similar acts or omissions in a series of related matters or transactions for the purposes of limb (iv) of the aggregation provision within the prevailing Solicitors’ Minimum Terms and Conditions (“MTC”). His decision was modified on appeal by the Court of Appeal in AIG Europe Ltd v OC320301 LLP [2016] EWCA Civ 367.

The first instance decision is considered by David Turner QC of 4 New Square and the Court of Appeal decision by the editor. The importance of this decision should not be underestimated: it is the first occasion on which the courts have ruled on the extended aggregation wording introduced into many professional indemnity policies following the House of Lords’ decision in Lloyds TSB General Insurance Holdings Ltd v Lloyds Bank Group Insurance Co Ltd [2003] Lloyd’s Rep IR 623.