PICTORIAL MACHINERY, LTD. v. NICOLLS.

(1940) 67 Ll.L.Rep. 524

KING'S BENCH DIVISION.

Before Mr. Justice Humphreys.

Insurance - Public Liability Policy- Liability of underwriters under policy providing indemnity "against all sums which the assured shall become legally liable to pay in respect of claims made against the assured" by third parties- Costs reasonably incurred-Negligence of employee of assured causing fire- Claims made by third parties-Underwriters notified - Repudiation of liability by underwriters-Proceedings commenced by S. (third party) against assured-action defended by assured- Costs incurred - Underwriters held liable to indemnify assured under policy - Whether underwriters liable for costs incurred by assured in defending claim by S.-"1. In addition to compensation as above, the underwriters agree that, in the event of their requiring any claim to be contested by the assured, they will pay all costs, charges and expenses in connection therewith . . . 2. The liability of underwriters shall not exceed [the insured sum] except that the underwriters shall in addition, and subject to provision No. 1 above, pay all legal and other costs incurred with their consent in the defence of any claim made against the assured."