Professional Risk - April 2008

In this edition we look at a variety of issues including ... 

... mortgage fraud and the  implications for professionals, the extent of an insurance broker's duty upon renewal and the latest decision on waiver and estoppel.

Introduction

Welcomes readers to the new quarterly newsletter and provides details as to the new arrivals to the team.  Mike Grant introduces the first edition of this quarterly newsletter.

A thorny issue

In the case of Daryl Fisk v Brian Thornhill & Son (A Firm) a pub suffered significant flood damage. Insurers avoided the policy due to misrepresentations and breaches of warranty. The owners sued their insurance broker who sought a contribution from a sub-broker.  The contribution claim involved a fight between the brokers as to who was responsible for the losses suffered. In this article Ben Hardiman considers what lessons can be taken from the Daryl Fisk case and considers the key duties owed by brokers at renewal.

Lenders claims: Avoid being a professional scapegoat!

The Law Society has recently issued a Practice Note for identifying and preventing mortgage fraud. Michelle Garlick and Yamini Paramesan discuss its significance in light of the recent increase in lenders claims.

Reserving insurers’ rights in the light of Kosmar v Euclidian

Breach of the notification clause in a public liability policy, worded as a condition precedent to insurers' liability, automatically discharges insurers' liability under the policy from the date of the breach. Dealing with the claim for a reasonable time following late notification does not amount to a waiver of insurers' rights to repudiate. Anne-Marie Morgan-Barrett and Gemma Badger consider the recent Court of Appeal decision in Kosmar Villa Holidays v Trustees of Syndicate 1243.

We hope that you find our bulletin informative and practical and we would welcome feedback on ways in which we can ensure that the bulletin best meets your needs.  The Bulletin’s joint editors are Mike Grant and Sam Beer.

This update does not attempt to provide a full analysis of those matters with which it deals and is provided for general information purposes only and is not intended to constitute legal advice and should not be treated as a substitute for legal advice. Weightmans LLP accepts no responsibility for any loss that may arise from reliance on the information in this update. The copyright in this update is owned by Weightmans.