INSURANCE CORPORATION OF THE CHANNEL ISLANDS ROYAL INSURANCE (UK) LTD v THE ROYAL HOTEL LTD AND OTHERS

[1998] Lloyd's Rep IR 151

QUEEN’S BENCH DIVISION COMMERCIAL COURT

BEFORE MR JUSTICE MANCE

Non-disclosure - Fire insurance - Materiality - Inducement - Affirmation - Estoppel - Abuse of process - False invoices raised by insured for submission to bankers prior to renewal.of material damage and business interruption fire insurances - Insurers solicitors tactical decision not to raise non-disclosure point at fraud action - Following judgment in fraud action insurers decision to avoid material damage policy on grounds of non-disclosure - Whether knowledge and intentions of insureds director and company secretary attributable to insured - Whether insureds conduct material - Whether insurer induced to underwrite renewal of material damage policy by non-disclosure of that conduct - Effect of party to arbitration allowing further performance by arbitrator - Whether insurers had affirmed material damage policy - Whether precluded, on grounds of estoppel or abuse of process, from avoiding policy.