Third party rights

The operation of the 1930 Act

The decision of Blackburne J in Centre Reinsurance International v Curzon Insurance Ltd [2004] Lloyd’s Rep IR 622 was discussed last year in Insurance Law Monthly (Volume 4: April (pp1–5). In that case Blackburne J considered, in the context of the insolvency of T&N while facing massive asbestos liability claims from employees, the operation of the Third Parties (Rights against Insurers) Act 1930 under which the victim of an insolvent assured is given a direct cause of action against the assured’s liability insurers. There has been an appeal to the Court of Appeal – Centre Reinsurance International Co v Freakley [2005] Lloyd’s Rep IR 264 – and most of the points dealt with by Blackburne J were upheld. Other aspects of the litigation involving T&N have been discussed in earlier issues of Insurance Law Monthly.