Subrogation - Subrogation against policy beneficiaries

(Co-operative Retail Services v Taylor Young Partnership Ltd, July 2000, forthcoming in [2000] Lloyd’s Rep IR )

The vexed question of the availability of a project insurer’s rights of subrogation against sub-contractors employed to provide construction and related services has yet again reached the Court of Appeal, in Co-operative Retail Services v Taylor Young Partnership Ltd , July 2000, forthcoming in [2000] Lloyd’s Rep IR, on appeal from Judge Wilcox in the Technology and Construction Court. As ever, the outcome depended upon the terms of the sub-contract and in particular upon whether the insured head contractor had, by insuring for the benefit of the subcontractor, implicitly agreed to exempt the sub-contractor from liability.