INSURER UNDER JOINT INSURANCE POLICY UNABLE TO EXERCISE RIGHT OF SUBROGATION IN NAME OF ONE CO-ASSURED AGAINST ANOTHER CO-ASSURED

Co-operative Retail Services Ltd v Taylor, Young Partnership (unreported, Court of Appeal, 4 July 2000)

In Co-operative Retail Services Ltd v Taylor, Young Partnership (unreported, Court of Appeal, 4 July 2000) it was held that an insurer under a joint insurance policy was unable to exercise a right of subrogation in the name of one co-assured against another co-assured (being, on the facts, a main contractor and a sub-contractor). This being the case, neither the main contractor nor the sub-contractor were liable to the employer in respect of the damage done to the building by the assumed breach of duty by the main contractor and the sub-contractor. Thus neither the main contractor nor the sub-contractor were liable to make a contribution to other professionals who were assumed to be liable to the employer because the main contractor and the sub-contractor were not ‘liable in respect of the same damage’ under s1(1) of the Civil Liability (Contribution) Act 1978.