BAE SYSTEMS PENSION FUNDS TRUSTEES LTD V ROYAL & SUN ALLIANCE INSURANCE PLC

[2017] EWHC 2082 (TCC), Queen's Bench Division, Technology and Construction Court, Mrs Justice O'Farrell, 14 July 2017

Insurance (liability) - Third Parties (Rights against Insurers) Act 2010 - Application to join insurers to claim against assured - Dispute as to liability of assured - Dispute as to coverage under policy - Effect of arbitration clause in insurance policy

BK was appointed as design and build contractors for works to be carried out in Cheshire. GSEL was engaged by BK as subcontractor to carry out soil stabilisation works. A further subcontractor, T, was engaged by BK to design and construct a concrete slab. SL was appointed by BK as consultant structural engineers. The slab was alleged to be defective. Proceedings were commenced against the contractor and subcontractors. T went into administration. BAE became aware that T was insured by RSA and applied to join RSA as co-defendant under the Third Parties (Rights against Insurers) Act 2010. RSA contested joinder on the grounds that they had a defence to any claim by reason of breach of a notification obligation, and that the policy required disputes to be referred to arbitration in France.