Compliance with conditions affecting coverage

In M J Harrington Syndicate 2000 v Axa Oyak Sigorta AS [2006] EWHC 112 (Comm) reinsurers sought summary judgment against insurers who had insured a Turkish bank against fidelity losses under a bankers’ blanket bond cover. The reinsurers had stipulated in a number of ways that employees of the bank were required to have two consecutive weeks’ holiday in any one year, a standard provision in fidelity policies, but the bank had failed to comply. The question in the present case was whether the reinsurers were entitled to negative declaratory relief. This was refused on the basis of arguable defences.