Property insurance: measure of indemnity, reinstatement and declaratory relief

In Great Lakes Reinsurance (UK) SE v Western Trading Ltd [2016] EWCA Civ 1003 the Court of Appeal had to consider: (a) when it is appropriate to grant a declaration in favour of an insured claiming the costs of reinstatement where no reinstatement had been carried out prior to trial and there was doubt over the intention and ability of the insured to carry out reinstatement; and (b) whether an insurer could rely on a condition requiring works of reinstatement to be been carried out with reasonable despatch where the insurer had refused to confirm indemnity. The decision is considered by Miles Harris of 4 New Square.

The facts