KNIGHT v. HOSKEN.

(1942) 72 Ll.L.Rep. 206

KING'S BENCH DIVISION.

Before Mr. Justice Atkinson.

Insurance - Estate Agents Indemnity Policy- Defence of action brought against assured- Costs- Contribution by assured- Policy taken out by plaintiff with defendant underwriters indemnifying him in respect of claims (up to £2000) arising by reason of any neglect, omission or error by him in his professional capacity as surveyor and valuer- Clause in policy providing that in the event of the underwriters requiring any claim to be contested by the assured, they would pay all costs, charges and expenses in connection therewith- Valuation of property for mortgage purposes- Action brought by mortgagees against assured claiming £3700 damages in respect of erroneous valuation of property- Notice of claim given to underwriters- Defence undertaken by underwriters- Suggestions subsequently made to assured by underwriters that hem should "contribute on the basis of 1700/3700ths of all costs which may be incurred in the defence of the action"- Assured's reply that he would be prepared to contribute towards the costs which might be incurred in the defence of the action, in the event of award of damages exceeding £2000- Award of damages by Court of Appeal (reversing learned Judge), damages to be assessed by Official Referee- Defence undertaken by underwriters up to Court of Appeal- No attendance before Official Referee- Judgment entered against assured for over £5000- Action brought by assured against underwriters to recover £2000 due under policy; also taxed costs of mortgagees and own costs- Right of underwriters to set off proportion of costs- Enforceability of assured's agreement to contribute- Consideration - Forbearance to discontinue conduct of action.