The effect of mistake

In Kyle Bay Ltd v Certain Lloyd’s Underwriters [2007] EWCA Civ 57 the Court of Appeal, upholding the first instance decision of Deputy High Court Judge Jonathan Hirst ( [2006] Lloyd’s Rep IR 718; Insurance Law Monthly (Volume 18: September (pp9–11))), the Court of Appeal has confirmed that a compromise agreement in respect of an insurance claim cannot be overturned even though one of the parties was under a fundamental mistake as to the meaning of the policy.