AVONDALE EXHIBITIONS LTD V ARTHUR J GALLAGHER INSURANCE BROKERS LTD

[2018] EWHC 1311 (QB), Queen's Bench Division, His Honour Judge Keyser QC (sitting as a Judge of the High Court), 31 May 2018

Insurance (broker) - Assured in breach of duty of disclosure of convictions - Whether assured told broker of convictions - Whether broker failed to warn assured of duty of disclosure

Avondale, owned by Mr and Mrs Watkins carried on the business of the manufacture and erection of exhibition stands. The stands were insured by QBE Insurance under a Commercial Combined Insurance for the years 2010–2011, 2011–2012 and 2012–2013. On 26 August 2012, during the currency of the final policy, there was a fire at Avondale’s premises, causing serious damage to the premises and destroying the stock. Following investigations, QBE declined cover and purported to avoid all three policies. QBE relied upon non-disclosure of two criminal convictions of Mr Watkins. The first was in February 2005 for three offences: racially aggravated harassment, alarm or distress; failing to provide a specimen of breath; and obstructing a constable. He was sentenced to four and a half months' imprisonment. The second was in October 2009 for assault occasioning actual bodily harm, leading to a sentence of sixteen months' imprisonment. Avondale sought to recover damages from its brokers.