Liability insurance: third party rights

In AB and Another v Transform Medical Group (CS) Ltd and Another [2020] CSOH 3 the Outer House of the Court of Session ruled that an agreement between the assured and its liability insurers in advance of the assured’s administration could not be attacked by third-party claimants, even though its effect was to limit their practical ability to enforce future judgments against the assured under the Third Parties (Rights Against Insurers) Acts 1930 and 2010. However, in this case there was no evidence of bad faith or collusion.

The facts