JOINT NAMES INSURANCE, INDEMNITIES AND THE CONSTRUCTION OF CONTRACTUAL DOCUMENTS

Tyco Fire and Integrated Solutions (UK) Ltd v Rolls Royce Motor Cars Ltd [2007] EWHC 3159 (TCC); [2007] BLR 419

In Tyco Fire and Integrated Solutions (UK) Ltd v Rolls Royce Motor Cars Ltd [2007] EWHC 3159 (TCC); [2007] BLR 419 His Honour Judge Gilliland held that the claimant contractor was entitled to a declaration that the defendant employers were not entitled to recover any compensation from the claimant in respect of any damage, expense or loss arising from an escape of water attributable to the assumed negligence of the claimant. The indemnity given to the employer by the claimant had to be read in light of the special regime laid down in the contract in relation to damage caused by specified perils. Judge Gilliland emphasised that the issue was not one of the claimant excluding liability for negligence ‘but rather of ascertaining how the parties have agreed that the risks and liabilities in relation to the specified perils are to be borne’.