McCORMICK AND ANOTHER v. NATIONAL MOTOR & ACCIDENT INSURANCE UNION, LTD.

(1934) 49 Ll L Rep 361

COURT OF APPEAL.

Before Lord Justice Scrutton, Lord Justice Greer and Lord Justice Slesser.

Motor insurance-Third parties-Policy taken out by Dickson with defendant insurance company-Accident-Action for damages brought by third parties against Dickson-Defended by defendant insurance company - Knowledge acquired just before trial that Dickson (under the name of Dadswell) had been adjudicated bankrupt -Discovery during trial that Dadswell had previously been convicted of dangerous driving - Damages awarded third parties-Repudiation of liability by defendants a few days after trial on the ground of a false statement in the proposal form-Action brought by third parties against defendants under Third Parties (Rights against Insurers) Act, 1930-Road Traffic Act, 1930, Sect. 36 (4), (5)- Effect of issue of certificate-Finding of learned Judge in favour of third parties on ground that defendants were estopped from denying liability under the policy by reason of the fact that, in taking no immediate action upon their discovery of the facts concerning Dickson, they had approbated the policy and could not afterwards reprobate it.