Choice of law and breach of warranty

In Travelers Casualty and Surety Co of Canada v Sun Life Assurance Co of Canada (UK) Ltd [2006] EWHC 2716 (Comm) Christopher Clarke J denied indemnity to the assured under a global liability cover which applied to liabilities incurred for misselling of financial products. The insurers were held to be free from liability by reason of a breach of warranty by the assured relating to its knowledge of circumstances which could give rise to a claim under the policy when it incepted. The parties had earlier been in the English courts, in Travelers Casualty and Surety Co of Europe Ltd v Sun Life Assurance Co of Canada (UK) Ltd [2004] Lloyd’s Rep IR 846 on the question of whether the English court possessed jurisdiction to hear a claim by the insurers for negative declaratory relief.